The ASX 200 attempted to stabilise on Wednesday after a volatile start to the week, though the rebound may struggle to extend as key technical resistance looms overhead. At the same time, Graphene Manufacturing (GMG) has shown early signs of a potential turnaround following a sharp rebound from support.
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ASX 200 Rebounds From Volatile Lows but Resistance Builds
ASX 200 Market Snapshot
- The ASX 200 managed to rise up to 1.7% by the day’s high on Wednesday, though closed up 1% to recoup some of its risk-off losses
- Daily trading volume was slightly below its 20-day average, suggesting the rebound was more of a relief from selling as opposed to initiative ‘risk-on’ buying
- The ASX has fallen as much as -8% from its record high, but has recovered 2.8% from this week’s volatile low set on Tuesday
- With expectations settling on a drawn-out war in Iran, it could cap gains for the local share market
- 9 of the 11 sectors advanced, led by technology (XIJ), materials (XMJ) and healthcare (XHJ), energy (XEJ) and consumer staples (XSJ) declined during the mild risk-recovery day
- SPI 200 futures were up 0.28% overnight, pulling back after meeting resistance around its 200-day EMA and now trading around its 200-day SMA
Source: ASX, LSEG
ASX 200 Technical Analysis
ASX 200 Options Positioning: 8,900 Reclaim Level as Downside Risk Extends Toward 8,600
Options positioning suggests the centre of gravity for the ASX 200 has shifted lower into Wednesday’s expiry. While the largest concentration of contracts sits around 8,900, that level now acts more as a reclaim level rather than a near-term magnet after the recent selloff. If the index attempts to rebound, resistance may emerge around 8,850–8,900, while near-term support appears around 8,775. A break below that level could expose the next meaningful downside level closer to 8,600, where larger put positioning sits.
Source: ASX, ASX24, TradingView
SPI 200 Futures Reject Key Resistance Near 200-Day EMA
The SPI 200 (ASX 200 futures) chart on the right shows a shooting star candle formed overnight. Resistance was met just beneath a high-volume node (HVN), the monthly S1 pivot point, and around the 200-day EMA. Prices then retraced toward the 200-day SMA.
These are clearly important averages for the ASX over the near term, so unless the market receives a strong risk-on catalyst today, it seems more likely that bears may attempt to push prices lower while these upper resistance levels continue to hold.
Graphene Manufacturing (GMG) Technical Analysis
The 15.8% rally on Tuesday marked GMG’s strongest session in 28 trading days. The move followed a prolonged pullback, with the final three sessions forming narrow-ranged dojis — a pattern that often signals seller exhaustion. This suggests an important swing low may have formed just below the $2 handle, marking a higher low relative to the decline to $1.77.
It is also worth noting that the pullback held above the monthly S1 pivot, and GMG is now attempting to break back above the monthly pivot point, which could shift near-term momentum back in favour of bulls.
Bulls may look for dips within Tuesday’s range to improve the reward-to-risk ratio, targeting a move toward the $2.26 cycle high, which sits just below the monthly R1 pivot.
Source: ASX, ASX24, TradingView
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-- Written by Matt Simpson
Follow Matt on Twitter @cLeverEdge
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