Janet Yellen and the FOMC meeting will be in focus this week with Fed comments so crucial to the next moves across the US Dollar, Euro Dollar and Global indices, with many suggesting the word ‘Patience’ may be replaced with a more hawkish tone. With every mention of an earlier rate hike in the US (June is still the expectation) the US stock market pulls back, making the markets this week very nervous and jittery. In addition to that, Brent Crude Oil broke several levels of support and has started heading south, despite many believing the recent move higher was part of a much larger move. The Aussie Dollar continues to bounce around mid-76 cent levels and Gold continues to find the going tough at $1,200 per ounce after several weeks of consistent selling pressure.
How did the Aussie market perform today?
S&P/ASX200 lost 16.8 points or -0.30% on volume of $3.60 billion, closing at 5797.7.
Australian sector watch
Looking over the charts
- The Aussie 200 Index tested trader’s support levels in early trading, heading down to the 5760 level before finding some support, pushing our index towards Friday’s closing price.
- As a result of the large fall in Crude Oil prices the Energy sector was the worst hit today, really dragging or index lower as the sector fell 1.98 per cent.
- With earnings season out of the way and dividends among the leading stocks already paid out, the next move from the Aussie 200 index is going to be critical and the support level at 5750 absolutely vital. As we are struggling to find where the value is in the market, the current short term pressure could continue, forcing our index lower.
- Support is currently sitting at 5775 and below that at 5750 with resistance overhead at 5800-5810 and 5825 and then 5865.
Chart Courtesy of Invast MT4
ASX top 200 stock analysis
28% of stocks are showing oversold levels, 13% are showing overbought levels and 62% 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:
- RSG RESOLUTE MINING +6.00%
- MND MONADELPHOUS GROUP +5.05%
- IIN IINET +4.00%
- TPI TRANSPACIFIC INDUSTRIES GROUP +3.29%
- DLS DRILLSEARCH ENERGY +2.94%
Top 5 Losers:
- SXY SENEX ENERGY -7.46%
- RRL REGIS RESOURCES -7.00%
- MRM MMA OFFSHORE -6.63%
- SKE SKILLED GROUP -5.84%
- AWE AWE -5.02%
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