Crude Oil stole the headlines again Wednesday night after dropping to fresh 5 years lows with an almost capitulation style sell-off seen over the last few weeks, which had a huge negative effect on international bourses with the Dow Jones down a massive 1.51 per cent. On a positive note, Australian unemployment numbers came in and the print was very strong. We saw 42,700 jobs being added versus an expectation of 15,000, pushing our Aussie Index higher and the Aussie Dollar hit an intraday high of 0.8375.
How did the Aussie market perform today?
S&P/ASX200 lost 28 points or -0.54% on volume of $5.86 billion, closing at 5231.
Australian sector watch
Looking over the charts
- The Aussie 200 index has managed to withstand quite an aggressive sell-off from US markets overnight, steadying from early selling pressure, which dropped our index a hefty 70 points, before some sense came back into the markets towards the close.
- It appears our market is hitting downside exhaustion, especially now that the big mining companies have fallen so much recently.
- We are also noticing the exact bullish divergence play we spoke about on Wednesday, whereby the market had potential downside, yet the stochastic has a real chance to staying firm above the previous low, thereby creating this bullish divergence signal.
- If we see commodities rally from here and a buy-the-dip mentality play out among market participants, we could see a quick move up higher, but quite a few factors need to align.
- Support is currently sitting at 5200 and near today’s lows at 5170. Resistance continues to build around 5250 and above that at 5280.
Chart Courtesy of Invast MT4
ASX top 200 stock analysis
41% of stocks are showing oversold levels, 13% are showing overbought levels and 34% 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:
- NCM NEWCREST MINING +3.43%
- CDD CARDNO +3.28%
- CTX CALTEX AUSTRALIA +2.86%
- SHL SONIC HEALTHCARE +2.77%
- SPK SPARK NEW ZEALAND +2.76%
Top 5 Losers:
- ARI ARRIUM -8.82%
- STO SANTOS -8.26%
- KAR KAROON GAS AUSTRALIA -7.79%
- SEA SUNDANCE ENERGY AUSTRALIA -7.78%
- LYC LYNAS CORPORATION -7.69%
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