Janet Yellen’s testimony to Congress on Wednesday morning didn’t provide too many clear signals but the USD did remain mixed, although more bullish than bearish compared to its major counterparties, with the British Pound bucking the trend and hitting new short term highs. Locally our ASX 200 hardly reacted from the Chinese GDP print as expected at 7.5 per cent but the Aussie Dollar did head lower on the news.
How did the Aussie market perform today?
S&P/ASX200 gained 7.6 points or +0.14% on volume of $3.1 billion, closing at 5518.9.
Australian sector watch
Looking over the charts
- Another lacklustre Aussie 200 trading session with the bulls unable to penetrate higher and the bears unable to claw the market back down, leading to a classic indecisive stand-off.
- Yesterday we captured a near bearish engulfing pattern and today we followed up with an inside day. Again the common theme of 2014 is the lack of follow through or momentum once our market seems to find a direction.
- The bearish divergence signal is still hanging around, although it is only a mild divergence but one worth keeping an eye on. At this juncture it seems really odd how lacking in conviction both the bulls and the bears are. No-one is keen to sell and yet hardly anyone is putting their hand up to buy.
- Support and resistance levels have not changed from yesterday. Support is sitting at 5500 and then down at 5485 with resistance at 5530 and then the next major resistance is at 5560 before new 6 year highs are hit.
ASX top 200 stock analysis
20% of stocks are showing oversold levels, 25% are showing overbought levels and 55% 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:
- SIR SIRIUS RESOURCES NL +14.83%
- PDN PALADIN ENERGY +7.81%
- FMG FORTESCUE METALS GROUP +6.26%
- ARI ARRIUM +4.05%
- ILU ILUKA RESOURCES +3.90%
Top 5 Losers:
- ALQ ALS -3.34%
- PPT PERPETUAL -2.96%
- ENV ENVESTRA -2.94%
- SWM SEVEN WEST MEDIA -2.89%
- SKC SKYCITY ENTERTAINMENT GROUP -2.81%
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