International bourses were fairly flat in overnight trading, with US Veteran’s day meaning volumes and volatility were quite low, with few traders able to take advantage of the quiet times it seemed. The Aussie 200 index looked shaky from the outset, pulling back below the 5500 support level before the selling intensified, pushing the index to the lowest level in 8 trading sessions, with the Information Technology and Materials sectors under the most heat.
How did the Aussie market perform today?
S&P/ASX200 lost 54 points or -0.99% on volume of $3.71 billion, closing at 5463.1.
Australian sector watch
Looking over the charts
- The Aussie 200 Index succumbed to an increased amount of selling pressure today, breaking through the 5500 mark for the first time in quite a few days.
- Over the last 2 weeks we’ve been talking about the bearish divergence showing in the charts across the Aussie 200 index but also quite a lot seen on the ASX top 50 stocks, and today it looks like it was the breaking point. Having said that, previous examples of this divergence have resulted in modest pull backs only, so best not to get too excited if you are a perma-bear.
- Momentum on the stochastics is clearly showing a downward tilt and this does come from a lower high, looking back to early September, so we’ll be keeping a close eye on things to see if this is the start of a bigger overall pull back. We wouldn’t be surprised if it is, but the markets have been quiet challenging to predict recently.
- Support is currently sitting at 5440 and below that at 5425 and 5400 with resistance overhead at 5475 and then the solid support at 5500 has now turned in to new resistance.
Chart Courtesy of Invast MT4
ASX top 200 stock analysis
20% of stocks are showing oversold levels, 28% are showing overbought levels and 45% 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:
- NST NORTHERN STAR RESOURCES +5.00%
- RRL REGIS RESOURCES +4.14%
- GEM G8 EDUCATION +2.58%
- AZJ AURIZON HOLDINGS +2.13%
- BDR BEADELL RESOURCES +2.00%
Top 5 Losers:
- AGO ATLAS IRON -14.29%
- BCI BC IRON -10.40%
- MYR MYER HOLDINGS -7.37%
- CPU COMPUTERSHARE -5.01%
- OFX OZFOREX GROUP -4.90%
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