The People’s Bank of China (PBOC) cut their base interest rate over the weekend by 0.25 per cent, causing the Aussie Dollar to grind lower throughout the day and the Aussie 200 Index to break out above resistance and hit the highest price since 2008 (again). China is very keen to stimulate their economy and will do everything they can to get the dollars flowing back into their economy. In addition to this the HSBC Chinese Manufacturing PMI came in slightly better than expected at 50.7 versus analysts’ expectations of 50.1. Gold has also continued to track higher, sitting around the $1,220 per ounce level.
How did the Aussie market perform today?
S&P/ASX200 gained 30.1 points or +0.51% on volume of $4.97 billion, closing at 5958.9.
Australian sector watch
Looking over the charts
- The Aussie 200 Index enjoyed some positive fundamental news, allowing the technical traders enough reason to take the index clearly above recent resistance, breaking out and hitting an intraday high of 5986.5.
- Unfortunately the buying enthusiasm dried up, causing our index to pull-back 34 points from that high as the profit taking started to intensify.
- On the daily chart we notice the bullish ascending triangle pattern that did in fact break out today but also note the bearish divergence that continues to build as our market grinds higher.
- Support is currently sitting at 5945 – 5950 and below that at 5925 and then 5900 with resistance at 5970 and today’s high at 5986.5.
Chart Courtesy of Invast MT4
ASX top 200 stock analysis
13% of stocks are showing oversold levels, 32% are showing overbought levels and 68% 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:
- SWM SEVEN WEST MEDIA +9.12%
- CAB CABCHARGE AUSTRALIA +7.44%
- ILU ILUKA RESOURCES +5.34%
- APA APA GROUP +5.11%
- RRL REGIS RESOURCES +4.99%
Top 5 Losers:
- MYR MYER HOLDINGS -10.78%
- SIR SIRIUS RESOURCES NL -7.19%
- MTS METCASH -7.01%
- FXJ FAIRFAX MEDIA -5.10%
- AHY ASALEO CARE -5.01%
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