Despite strong leads from US Markets on Thursday (S&P500 was up 1.26 per cent), our local Aussie index has been unable to gain any traction, falling away a disappointing 35.7 points, which is compounded further when we note that Japan’s Nikkei was up plus both Copper and Gold pushed higher as well. What has been interesting to note is that the Volatility Index dropped massively as the US Markets rebounded, indicating that risk and fear has quietened down and bull market conditions are in place. The Aussie Dollar has bounced back 120 pips from recent lows and Gold is currently trading around the $1,160 per ounce mark.
How did the Aussie market perform today?
S&P/ASX200 lost 35.7 points or -0.61% on volume of $3.90 billion, closing at 5814.5.
Australian sector watch
Looking over the charts
- The Aussie 200 index has been unable to hold on to Thursday’s excellent gains, slipping from the open despite a strong rally on US bourses overnight.
- Today’s candlestick pattern is nearly a dark cloud cover, where the market opens above yesterday’s high and closed below the midpoint of the previous candle. Although not quite the gap up on open, the close below the midpoint is the key one to watch.
- We are at an interesting cross road right now as technically we’ve hit oversold in an uptrend, so the weight of evidence would point for a move higher and other indices are pushing in that direction. The great part about this setup is we’ve got clear stop loss levels off the recent low, so be mindful of that.
- Support is currently sitting at 5800 and below that at 5775 and 5750 with resistance overhead at 5840 and 5870.
Chart Courtesy of Invast MT4
ASX top 200 stock analysis
28% of stocks are showing oversold levels, 12% are showing overbought levels and 61% 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:
- IIN IINET +24.82%
- TPM TPG TELECOM +17.70%
- VOC VOCUS COMMUNICATIONS +8.70%
- VRL VILLAGE ROADSHOW +6.95%
- BCI BC IRON +5.13%
Top 5 Losers:
- EVN EVOLUTION MINING -4.24%
- LYC LYNAS CORPORATION -3.92%
- WHC WHITEHAVEN COAL -3.44%
- DMP DOMINO’S PIZZA ENTERPRISES -3.43%
- SXL SOUTHERN CROSS MEDIA GROUP -3.35%
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