Chinese bank rates took a haircut on Friday, suggesting that the government will do whatever it can to help both small business and their ailing property market, which saw 69 out of 70 cities fall in value, providing the necessary springboard for our key mining stocks to rally off recent lows, pushing the Materials index up a massive 3.22 per cent. This rate cut is widely expected to help the commodity heavy indices/currencies, with the Aussie Dollar rising off the back of this news to sit around the 0.8686 level.
How did the Aussie market perform today?
S&P/ASX200 gained 57.5 points or +1.07% on volume of $4.40 billion, closing at 5361.8.
Australian sector watch
Looking over the charts
- The Aussie 200 Index was seemingly unable to hold the full extent of the gains it made between Friday’s US session and the intraday highs of today, pulling back over the last 4 hours of trade, albeit very slightly.
- You can clearly see the accumulative buying over the previous two trading sessions, as shown in the chart below, which bodes well for the bulls, except for today’s struggle as our market approached the 5380 level.
- On the hourly chart (not shown below), we can clearly see higher lows and higher highs, but we were unable to hold above the long term 100 period moving average, which is forming quite the resistance point, especially towards the later part of the session. We did get a bullish stochastic cross, indicating that momentum might be starting to favour the bulls, but it is definitely early signs only.
- Support is currently sitting near the current price at 5340 and below that at 5325 and then 5300 with resistance building at 5370 and above that at 5400.
Chart Courtesy of Invast MT4
ASX top 200 stock analysis
50% of stocks are showing oversold levels, 5% are showing overbought levels and 37% 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:
- ALQ ALS +17.86%
- MML MEDUSA MINING +11.30%
- FMG FORTESCUE METALS GROUP +10.78%
- ARI ARRIUM +10.42%
- OZL OZ MINERALS +8.57%
Top 5 Losers:
- RSG RESOLUTE MINING -4.08%
- CDD CARDNO -3.05%
- FXL FLEXIGROUP -2.87%
- SGT SINGAPORE TELECOMMUNICATIONS -2.29%
- NVT NAVITAS -2.15%
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