The final hour of trading on the Dow Jones Monday night overnight saw a 200+ point sell-off on the Dow Jones, which didn’t bode well for the local Aussie market, however, fortunes changed quickly as Gold and Iron Ore prices found some firmer ground, providing the necessary stimulus for our local miners to rally into the close, with our market posting a handy 51.9 point gain on the day.
How did the Aussie market perform today?
S&P/ASX200 gained 51.9 points or +1.00% on volume of $4.5 billion, closing at 5207.4.
Australian sector watch
Looking over the charts
- The Aussie 200 Index continues to trade in the most volatile period since July 2013, with today’s market action favouring the bull’s, with plenty of potential short covering going on and perhaps a bit of bargain hunting.
- On the intraday chart, the Aussie index initially sold off 25 points before rallying nearly 90 points over the next 3 hours before consolidating those gains for the remainder of the session, providing a bullish engulfing pattern on the daily chart as shown below.
- Normally at this stage we’d start to see a bullish divergence opening up but the stochastics remains flat in the oversold region with no hint of that sign, so now its more a matter of monitor resistance levels for key breaks to the upside.
- Support is currently sitting at 5140 and then 5120 and 5100 and resistance is at 5200 and then beyond that at 5125, but be mindful of short covering pushing through overhead resistance points quickly.
Chart Courtesy of Invast MT4
ASX top 200 stock analysis
49% of stocks are showing oversold levels, 2% are showing overbought levels and 18% 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:
- MGX MOUNT GIBSON IRON +17.98%
- AGO ATLAS IRON +14.86%
- BCI BC IRON +13.07%
- PNA PANAUST +10.89%
- LYC LYNAS CORPORATION +9.21%
Top 5 Losers:
- LNG LIQUEFIED NATURAL GAS -7.84%
- WTF WOTIF.COM HOLDINGS -7.60%
- SXY SENEX ENERGY -7.34%
- RSG RESOLUTE MINING -4.82%
- HZN HORIZON OIL -3.57%
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:
Ashley Jessen
Director of Communications
Email: ashley_jessen@invast.com.au
Phone: 02 8036 7567