Falling commodity prices and flat US markets provided no roadblock for the bulls to find buying opportunities across the ASX today with all sectors managing to trade in the black, pushing our Aussie 200 index up a handy 61.4 points. Germany’s Dax index managed to rise off average growth reports yet the US markets were flat despite beating analysts’ expectations of 3.5% GDP, hitting 3.9% for the third quarter.
How did the Aussie market perform today?
S&P/ASX200 gained 61.4 points or +1.14% on volume of $4.60 billion, closing at 5396.2.
Australian sector watch
Looking over the charts
- The Aussie 200 Index finally felt the buying power of the bulls today, rising nicely out of the oversold region and breaking a few minor resistance points along the way. The accumulative buying over the last few sessions has been favouring the bulls as we’ve been speaking about.
- In addition to the swing higher, the market closed in the upper portion of the trading range, providing another bullish signal, with all sectors showing green screens. What is interesting is that we had flat US Markets overnight and commodities were largely down across the board with Iron Ore, Crude and Gold languishing, yet our commodity heavy market soldiered on.
- Momentum is starting to favour the bulls and the market over recent times is all about finding your entry point, identifying a sensible stop-out level and adjusting your risk accordingly. Therefore, if you are right you win, otherwise you take a relatively small loss.
- Support is currently sitting around the 5355 and below that at 5330 and then 5295 with resistance sitting at 5390 and above that at 5425.
Chart Courtesy of Invast MT4
ASX top 200 stock analysis
23% of stocks are showing oversold levels, 13% are showing overbought levels and 45% 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 +19.57%
- KAR KAROON GAS AUSTRALIA +12.93%
- MML MEDUSA MINING +10.32%
- GXL GREENCROSS +10.07%
- EVN EVOLUTION MINING +9.91%
Top 5 Losers:
- AGO ATLAS IRON -4.88%
- CDD CARDNO -4.02%
- SEA SUNDANCE ENERGY AUSTRALIA -2.27%
- HZN HORIZON OIL -2.13%
- ARI ARRIUM -2.00%
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