Markets across the globe have continued to soften for the second day running with the DAX, S&P500, Dow Jones and Aussie 200 indices all pulling back from recent record highs. Investors appear to be uncertain about buying off the lows this time, which might be the early signs of potentially bigger moves to the downside to come. Gold is signalling bullish divergence and currently sits at $1,207 per ounce whilst the Aussie Dollar continues to gyrate between support and resistance, now hovering around 0.7820.
How did the Aussie market perform today?
S&P/ASX200 lost 32.3 points or -0.55% on volume of $4.50 billion, closing at 5901.6.
Australian sector watch
Looking over the charts
- Yesterday’s outside day on the Aussie 200 index did suggest a short term bearish move and today did confirm that to be the case, with our market unable to find support as it softened throughout the session.
- The bearish divergence we’ve been talking about seems to have taken hold and thwarted the upward momentum and when combined with the weaker GDP figures, it’s easy to see how our market drifted lower.
- It is important to note that the recent move higher has provided some clear cut support and resistance levels and a nice upward channel, that if broken would open the door to a short sharp move lower and we suggest you keep a close eye on this at this stage.
- Support is currently sitting at 5880-5890 and below that at 5850 with resistance overhead at 5915 and 5945-5950.
Chart Courtesy of Invast MT4
ASX top 200 stock analysis
20% of stocks are showing oversold levels, 22% 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:
- AGI AINSWORTH GAME TECHNOLOGY +5.77%
- SEA SUNDANCE ENERGY AUSTRALIA +4.67%
- SXY SENEX ENERGY +4.41%
- FXL FLEXIGROUP +4.29%
- SIP SIGMA PHARMACEUTICALS +3.72%
Top 5 Losers:
- WSA WESTERN AREAS -5.68%
- FMG FORTESCUE METALS GROUP -5.37%
- BCI BC IRON -5.26%
- LLC LEND LEASE GROUP -4.58%
- IGO INDEPENDENCE GROUP NL -4.04%
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