Incredible volatility across the Euro dollar and British Pound overnight as the ECB cut the lending rate from 0.15 per cent to 0.05 per cent and then made headlines everywhere by increasing the ‘negative’ interest rate the banks pay for holding money on deposit, now charging holders minus 0.2 per cent for the privilege. European indices pushed higher, US markets remained flat whilst the Aussie 200 index took a tumble from weak commodity prices, with Iron Ore the main culprit.
How did the Aussie market perform today?
S&P/ASX200 lost 32.6 points or -0.58% on volume of $3 billion, closing at 5598.7.
Australian sector watch
Looking over the charts
- The Aussie 200 index was unable to hold on to the 5615 level as it broke through convincingly as the Iron Ore spot price continues to buckle under the pressure, down around the $83 per tonne level.
- All sectors were in the red today except for Utilities with Health Care and Materials down the most, falling 1.37% and 1.15% respectively.
- The last few days we have been talking about the slight bearish divergence starting to show on the Aussie 200 and now we see momentum on the stochastic gathering to the downside as it fast approaches oversold. The next move will be interesting as it may hit oversold in the midst of a strong medium term uptrend.
- Support is sitting at the 5595 level immediately and then 5585 and below that we see 5565 as the next key line of support. Resistance is starting to build but is still fairly weak with levels at 5600 and 5625 as immediate resistance points.
Chart Courtesy of Invast MT4
ASX top 200 stock analysis
23% of stocks are showing oversold levels, 16% are showing overbought levels and 64% 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:
- CGF CHALLENGER +4.03%
- GEM G8 EDUCATION +2.95%
- CAB CABCHARGE AUSTRALIA +2.61%
- SXL SOUTHERN CROSS MEDIA GROUP +2.37%
- BRG BREVILLE GROUP +2.00%
Top 5 Losers:
- NST NORTHERN STAR RESOURCES -9.63%
- EVN EVOLUTION MINING -8.11%
- RRL REGIS RESOURCES -6.11%
- RSG RESOLUTE MINING -4.90%
- MSB MESOBLAST -4.86%
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