‘Patience’ is the keyword that came out of the FOMC minutes overnight with the FED suggesting there is no rush to hike rates, which saw the US Dollar pull-back from earlier gains during the day. Markets in the US were fairly flat and trendless, even after the minutes were released so Aussie traders yet again had to create their own direction, which was to breakout to the upside before that enthusiasm was tempered, resulting in the Aussie 200 Index ranging 65 points in a fairly volatile session, closing down 11.5 points. Gold continues to hover around $1,215 per ounce and the Aussie Dollar managed to find some legs and is currently trading at 0.7830.
How did the Aussie market perform today?
S&P/ASX200 lost 11.5 points or -0.19% on volume of $4.99 billion, closing at 5904.2.
Australian sector watch
Looking over the charts
- The Aussie 200 Index managed to hit another highest price since 2008, following similar themes as both European and US bourses continue hitting record all-time highs. This is despite the fact that our reporting season has been a little lacklustre with forward guidance’s coming in soft.
- One thing that is interesting to note is the bearish divergence that is quite apparent on the monthly chart of the Aussie 200 (not shown below) and will be one to monitor closely.
- Momentum continues to favour the bulls with nearly all short term pullbacks finding support and aggressive buying action at those lower levels. What we’ll be watching now is the strength of any further breakout and the volume involved in that breakout, as we’ve just had 2 days in a row over $5 billion in turnover or above.
- Support is currently sitting at 5885 with 5830 showing some solid support levels. Resistance is now building, especially after today’s intraday high and is sitting at 5915-5920 and above that at 5951.
Chart Courtesy of Invast MT4
ASX top 200 stock analysis
11% of stocks are showing oversold levels, 35% are showing overbought levels and 69% 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:
- SUL SUPER RETAIL GROUP +9.97%
- CWN CROWN RESORTS +9.82%
- BDR BEADELL RESOURCES +6.67%
- NST NORTHERN STAR RESOURCES +5.79%
- LYC LYNAS CORPORATION +4.26%
Top 5 Losers:
- IIN IINET -11.10%
- PNA PANAUST -6.90%
- DLS DRILLSEARCH ENERGY -5.83%
- ABP ABACUS PROPERTY GROUP -4.86%
- IOF INVESTA OFFICE FUND -4.29%
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