ASX closed at 7,118 today after 4th straight days of drops

Today at a glance: bearish sentiment ensured ASX finished today's session lower. However, despite the downward bias, ASX etched out a distinct 7,118 to 7,164.2 session range.

Data from Australia concerning GDP was released today at 01:30 UTC. Newly published figures emphasized continued decline from last month's figure of 0.6 to 0.2 this month.

Meanwhile, Australia Interest Rate released yesterday at 04:30 UTC with a figure of 4.1, while the previous figure was 3.85. Following a previous reading of 2.6%, GDP in Australia released today at 01:30 UTC fell short of the 2.4% figure expected by analysts with an actual reading of 2.3%.

Trend-following investors would be interested to note that ASX 200 made an initial break below its 200 day Simple Moving Average at 7,125.74, a possible indication of a forthcoming negative trend. According to asset volatility analysis, Bollinger Bands® shows an indication of recovery: the lower band is at 7,082, a low enough level to, generally, suggest that ASX is trading below its fair value. Support/Resistance levels obtained from chart analysis indicate that ASX could begin to recover as it approaches significant support, now 7.93 points away from 7,110. Dipping below could be an indication that further losses are ahead.

All in all, the technical analysis suggests ASX has no clear-cut direction.

In the meantime, negative performances are also seen in other markets, Nikkei is down to 31,900, losing 600 points, after ending the previous session around 32,500. Nasdaq lost 1.29% today and closed at 13,276.

Other assets are showing positive performances as Hang Seng went up by 0.8% today, and closed at 19,252.

Furthermore, Australia Trade Balance (Apr) is scheduled for tomorrow at 01:30 UTC.

Trading mostly sideways for a month. ASX is now trading 5.67% below the significant high of 7,558 it set around 4 months ago.