ASX closed today at 7,224.8 after six straight days of drops

Today at a glance: ASX dropped 82.2 points early on and stayed at 7,224.8.

Australia Retail Sales data will be released tomorrow at 00:30 UTC, with an expected improvement to 1.5%. ASX reaction to indicator information will follow.

While price action maintains a negative bias, Australia Company Gross Operating Profits (QoQ) (Q4) released today at 00:30 UTC with a figure of 10.6, while the previous figure was -11.5.

ASX 200 could begin to recover as it approaches significant support, now 57.93 points away from 7,167. Dipping below could be an indication that further losses are ahead. The MACD is significantly below its signal line, which suggests the market is running out of bearish momentum and could revert to a positive outlook as bulls regain control. ASX's lower Bollinger Band® is at 7,200, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains. On the other hand, note that after descending below strong Fibonacci support at 7,252, market bears have earmarked 7,180 as the next downside target.

Overall, looking at the technical analysis landscape, although technical indicators are mixed and pointing in different directions, it seems ASX is set to appreciate despite today's setback.

Other assets are showing positive performances as CAC is trading around 7,295.55 after ending today's session at 7,187.27 (up 1.51% today). EuroSTOXX goes up 1.66% today and closed at 4,178.82. Notably, FTSE rose 0.72% today and closed at 7,878.66.

Some optimism can drawn from the fact that Australia Retail Sales is projected to outperform its last figure with 1.5%, having previously been at -3.9%. The figure will be published tomorrow at 00:30 UTC.

Furthermore, Australia Current Account (Q4) scheduled to come out tomorrow at 00:30 UTC. Australia Private Sector Credit figure is projected at 0.3%. It previously stood at 0.3%; data will be released tomorrow at 00:30 UTC.

ASX has managed to gain 3.75% so far this year despite trading at lows around 6,434.7 previously.