Markets have really started to explode to the upside in the last few sessions with the Aussie Index benefiting from both the RBA rate cut plus buoyant US markets, which found support overnight and continued their positive moves to the upside. In addition to that Brent Crude Oil briefly bounced back about $60 per barrel but ended the session in the low $58’s with Copper also showing more positive signs recently.
How did the Aussie market perform today?
S&P/ASX200 gained 69.9 points or +1.21% on volume of $6.05 billion, closing at 5777.3.
Australian sector watch
Looking over the charts
- The Aussie 200 Index rocketed up on open, jumping an incredible 90 points before settling in to a more normal trading range, spending the majority of the day up around 50 points.
- Energy and Materials stocks were certainly the most buoyant as they continue their bounce from recent oversold levels, providing some handy gains for those tempted by this end of the oversold market.
- The weekly chart (not shown) clearly shows how strong the current move up is with a new perfect bullish candle with the stochastics pushing well and truly into the overbought region. One thing to note with stochastics is that it is not helpful in identifying overbought once we break new highs. The reason for this is that the market is consistently hitting the highest price in the last X days.
- Support is currently sitting at 570 and 5700 and below that at 5690 with resistance overhead at 5800 and then some further blue sky territory above that.
Chart Courtesy of Invast MT4
ASX top 200 stock analysis
6% of stocks are showing oversold levels, 55% are showing overbought levels and 67% 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:
- AGO ATLAS IRON +27.27%
- BCI BC IRON +15.79%
- SXY SENEX ENERGY +15.38%
- LYC LYNAS CORPORATION +13.95%
- SIR SIRIUS RESOURCES NL +11.79%
Top 5 Losers:
- NVT NAVITAS -7.37%
- KMD KATHMANDU HOLDINGS -4.36%
- NUF NUFARM -3.99%
- TNE TECHNOLOGY ONE -3.74%
- AWE AWE -3.23%
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