Early profit taking on the Australian market only appeared to motivate the bulls following the 50 point drop on the index in the first two hours of trade, with the Aussie 200 index fighting back boldly to finish in the black, providing hope for a continued push higher by the end of the week. Gold has been trading sideways around $1,231 per ounce and the US Markets will be on holiday today for President’s Day.
How did the Aussie market perform today?
S&P/ASX200 gained 11.2 points or +0.19% on volume of $3.85 billion, closing at 5888.7.
Australian sector watch
Looking over the charts
- The Aussie 200 index seemed to lose its firm footing for the first time in a few weeks as it lost 50 points with the first two hours of trading, however, the market managed to find plenty of support and rally towards the end of the session.
- Today’s candle shows a hanging man pattern at the top of the current uptrend combined with some bearish divergence. Momentum is clearly still pushing to the upside but traders must be on the lookout for any consistent selling action over the next week.
- Given the bullish price action over the last few weeks it would be quite positive if we saw some profit taking step in to drive the index to more favourable levels but our resilient market is not interesting in heading lower at this stage.
- Support is currently sitting at 5870 and below that at 5850 and 5835 with resistance at 5900 and above that at 5920.
Chart Courtesy of Invast MT4
ASX top 200 stock analysis
9% of stocks are showing oversold levels, 37% are showing overbought levels and 71% 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:
- WOR WORLEYPARSONS +10.23%
- PDN PALADIN ENERGY +9.59%
- UGL UGL +9.20%
- SXY SENEX ENERGY +8.45%
- KAR KAROON GAS AUSTRALIA +8.00%
Top 5 Losers:
- GEM G8 EDUCATION -10.04%
- BEN BENDIGO AND ADELAIDE BANK -4.45%
- RRL REGIS RESOURCES -3.27%
- MGR MIRVAC GROUP -3.24%
- ABP ABACUS PROPERTY GROUP -3.03%
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