Monday trading on the Nasdaq saw quite the roller coaster ride, following the announcement from Apple on their new watch, with the index gyrating half a percent up, half a percent down and back up half a percent again in just two hours of trading. Despite a strong start, our local index was unable to replicate the positive moves from the US and instead traded flat for the day, dragged down by the Energy and Consumer Discretionary sectors. Chinese Inflation climbed to 1.4% pushing the Aussie Dollar down to a low of 0.7631 whilst the selling pressure on Gold continues, pushing the price down to a 3 month low of $1,161 an ounce.
How did the Aussie market perform today?
S&P/ASX200 gained 2.9 points or +0.05% on volume of $4.23 billion, closing at 5824.2.
Australian sector watch
Looking over the charts
- The Aussie 200 index was unable to maintain the early morning enthusiasm and gave back all of those early gains, but more importantly managed to hold on to the current key support levels.
- Technical traders will be very interested in the potential of long positions at these levels given the support we are on in combination with oversold levels currently showing on several oscillator’s.
- We are now sitting on the first potential higher low, which came off the recent higher high and for swing traders and momentum traders, this is an ideal setup. Having said that, traders need to be cautious and manage the potential risk reward and see to it that they remain firm with their stop loss levels, if the trade should turn south and break current support levels.
- Support is currently sitting at 5800 and below that at 5765 with resistance building at 5840-5850 and above that at 5875.
Chart Courtesy of Invast MT4
ASX top 200 stock analysis
35% of stocks are showing oversold levels, 13% are showing overbought levels and 63% 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:
- SEA SUNDANCE ENERGY AUSTRALIA +6.93%
- KMD KATHMANDU HOLDINGS +5.99%
- SRX SIRTEX MEDICAL +4.46%
- QAN QANTAS AIRWAYS +3.57%
- ILU ILUKA RESOURCES +2.76%
Top 5 Losers:
- MND MONADELPHOUS GROUP -10.02%
- BCI BC IRON -7.41%
- HZN HORIZON OIL -7.14%
- AGO ATLAS IRON -6.25%
- FMG FORTESCUE METALS GROUP -5.61%
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