Despite a modestly positive session from international bourses our local market was unable to gain any firm footing, falling into negative territory throughout the day, following weaker than expected China Services PMI, hitting an all-time low of 50. We also had the Reserve Bank of Australia (RBA) deciding to leave rates on hold, citing lower wage growth, modestly increasing inflation and the interest in a stable environment in the short term.
How did the Aussie market perform today?
S&P/ASX200 lost 22.3 points or -0.40% on volume of $3.5 billion, closing at 5518.6.
Australian sector watch
Looking over the charts
- The Aussie 200 index started off on a fairly weak foundation and was unable to find any firm footing as it continually drifted into negative territory, closing the day around the lows.
- At this juncture our market is sitting right on support, which was resistance at the end of May, and there has been some distributive buying at these levels but they are lacking conviction. The market really needs to hold on to current levels to provide some sort of inspiration for buyers anticipating new potential highs.
- It must be said on the end of day XJO price the market has closed below recent support levels so it is hard to remain positive and the next few days are absolutely critical. The cause for concern is the lack of bounce from sold off European indices.
- Support continues to sit around the 5520 level, which is right on the current close and 5500 with resistance around 5535, 5555 and 5585.
ASX top 200 stock analysis
42% of stocks are showing oversold levels, 9% are showing overbought levels and 54% 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:
- COH COCHLEAR +10.33%
- LYC LYNAS CORPORATION +3.33%
- JHC JAPARA HEALTHCARE +3.10%
- SRX SIRTEX MEDICAL +3.00%
- IIN IINET +2.37%
Top 5 Losers:
- MML MEDUSA MINING -14.89%
- AGO ATLAS IRON -6.34%
- BDR BEADELL RESOURCES -4.81%
- ARI ARRIUM -4.76%
- SXL SOUTHERN CROSS MEDIA GROUP -4.22%
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