Copper continued to its rapid advance but ran into some pretty strong headwinds today with China’s HSBC manufacturing PMI coming in weaker than expected, highlighting further weakness in China’s numbers and the 49.2 read, versus the expectation of 50.4, indicates a contraction. As a result, Copper has been aggressively sold down and the full extent will be clearer on Wednesday. Despite an overall weakness in overnight markets, the Aussie 200 index managed to hold its head above water, posting a 13 point gain or 0.2 per cent. Gold has continued its advance, sitting at $1,187 per ounce and the Aussie Dollar is hovering around the 0.7870 mark.
How did the Aussie market perform today?
S&P/ASX200 gained 13 points or +0.22% on volume of $3.69 billion, closing at 5969.1.
Australian sector watch
Looking over the charts
- The Aussie 200 index traded in a narrow 25 point range, defying the negative overnight leads from the US but the trading action was unconvincing, especially with our market on the edge of hitting new 7 year highs.
- The current choppiness around the current high is indicative of indecision among traders and considering we are sitting well in overbought territory it will be the one to watch to see if we can break through the 6,007 mark.
- The stochastics is very line-ball at the moment, meaning that if markets hit new highs then the effectiveness of the stochastics is lost, but the Aussie 200 index is still on a double top, making the stochastics still a priority at this level. If we break into new highs then we’ll have to reconsider, but for now the risk reward opportunity is short.
- Support is currently sitting at 5940 and below that at 5900 with resistance at 5980 and 6000-6007.
Chart Courtesy of Invast MT4
ASX top 200 stock analysis
8% of stocks are showing oversold levels, 42% are showing overbought levels and 66% of stocks are currently above their long term moving average as of close of trading today. View the image below to better understand overbought and oversold levels.
S&P/ASX 200 Gainers and Losers
Top 5 gainers:
- ARI ARRIUM +20.00%
- DLS DRILLSEARCH ENERGY +7.28%
- SPO SPOTLESS GROUP HOLDINGS +7.27%
- SXY SENEX ENERGY +6.56%
- REG REGIS HEALTHCARE +5.36%
Top 5 Losers:
- KMD KATHMANDU HOLDINGS -12.42%
- MND MONADELPHOUS GROUP -7.69%
- LNG LIQUEFIED NATURAL GAS -4.14%
- AWC ALUMINA -2.94%
- GXL GREENCROSS -2.58%
Please note that these are our initial impressions and that it is important to read all disclaimers on this website when considering the information. If you would like to discuss further please contact:
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