Iron Ore and Gold prices took centre stage in the financial press with Gold dropping $22 per ounce, hitting a low of $1137.6, and Iron Ore hitting the lowest price in 5 years, opening the door for a soft start to trading, yet the Aussie 200 Index managed to jump nearly 30 points on open before succumbing to the pressure and dropping over 50 points from those intraday highs. By the close of trade our Index had pulled back 11.8 points despite the bullish Aussie employment data, adding 24,100 new jobs in October.
How did the Aussie market perform today?
S&P/ASX200 lost 11.8 points or -0.21% on volume of $3.78 billion, closing at 5506.1.
Australian sector watch
Looking over the charts
- The Aussie 200 index struggled today, which was expected given the weak leads across the key commodities. Having said that, Crude Oil prices did jump off the back of Saudi Arabia’s pipeline explosion, given hope for our local energy & utility stocks.
- Bearish divergence is starting to creep in to the Aussie 200 index and I’ve noted on Thursday’s open that a number of top 50 ASX stocks are showing signs of divergence as well. Divergence is often a very powerful signal but best when combined with confirmation, so we’ll see what progresses over the next few days.
- Stochastics momentum is starting to wane with the bullish camp seemingly running out of steam. We find ourselves in one of those tricky periods in the market with little in the way of a firm base and the potential for the market to move in either direction. I know what sounds obvious, but often there is a clear potential bias we can work from, but not right now.
- Support is currently sitting at 5490-5500 and below that at 5460 with resistance above at 5535 and 5555.
Chart Courtesy of Invast MT4
ASX top 200 stock analysis
23% of stocks are showing oversold levels, 40% 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:
- SUL SUPER RETAIL GROUP +12.06%
- TEN TEN NETWORK HOLDINGS +6.98%
- BDR BEADELL RESOURCES +6.82%
- NWS NEWS CORPORATION +6.60%
- SXY SENEX ENERGY +5.38%
Top 5 Losers:
- AGO ATLAS IRON -16.67%
- UGL UGL -14.64%
- LYC LYNAS CORPORATION -10.94%
- FMG FORTESCUE METALS GROUP -8.46%
- RSG RESOLUTE MINING -7.14%
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