The OPEC meeting in Vienna on Thursday night provided a sombre outlook for Crude Oil bulls, as the decision was clearly laid down that production levels would not be lowered (30 million barrels of oil per day), despite the perceived glut of oil currently stockpiled around the world, sending the price of oil down over six per cent and wiping off hundreds of millions of dollars off our key energy stocks. The Aussie 200 Index finished the day down 87.9 points with the Energy sector plummeting an incredible 8.27%.
How did the Aussie market perform today?
S&P/ASX200 lost 87.9 points or -1.65% on volume of $6 billion, closing at 5313.
Australian sector watch
Looking over the charts
- The Aussie 200 Index seemingly defied gravity yesterday as concerns about the OPEC meeting and commodity prices fell overnight, yet our index remained steadfast, but not so much today. Today saw key support levels broken and then some, as our largest energy stocks came under intense selling pressure.
- If you thought the market was already difficult to read then today wouldn’t be providing too much help on that front either. After several days of buying up the lows and then a mini rally higher, the bears took control and have now pushed our index to nearly close below the key level of 5320.
- Yesterday we mentioned that momentum was seemingly stuck in ‘no-man’s land’ and now we’re starting to see the true picture of where the momentum is. Surprisingly, if we can hold above 5300, then there is a firm possibility that we could push higher from the next bout of selling.
- Support is currently sitting at 5300-5310 and then below that at 5280 with resistance really starting to build at 5340 and above that at 5370 and then 5400.
Chart Courtesy of Invast MT4
ASX top 200 stock analysis
23% of stocks are showing oversold levels, 15% are showing overbought levels and 41% 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:
- QAN QANTAS AIRWAYS +6.96%
- BSL BLUESCOPE STEEL +3.13%
- FMG FORTESCUE METALS GROUP +2.80%
- SGN STW COMMUNICATIONS GROUP +2.19%
- HSO HEALTHSCOPE +1.95%
Top 5 Losers:
- SXY SENEX ENERGY -16.25%
- SEA SUNDANCE ENERGY AUSTRALIA -14.63%
- DLS DRILLSEARCH ENERGY -13.33%
- STO SANTOS -13.01%
- HZN HORIZON OIL -11.11%
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