Australia | Apr 10 2013
By Ashley Jessen, director of LearnCFDs.com and author of CFDs Made Simple
Slightly higher US markets did little to inspire our local market and even strong precious metals and a bullish mining sector was not able to generate a positive result with the S&P/ASX 200 falling a modest 8.83 points or 0.18% to close at 4968 on volume of $4.8 billion.
Economic news was dictated by strong Chinese import data, rising 14%, pointing to a recovery and potential strength for our mining sector. Australian Consumer Sentiment data was uneventful, showing a 5.1% drop, which the market didn’t take kindly to.
The Basic Material sector continued its recent excellent form, rising 1.95% with the Technology sector a distant second, rising 1.05%. There was not a lot of joy elsewhere in the market with more than half the sectors in the red with Consumers Goods and Consumers Services well and truly underperforming, falling 1.08% and 1.02% respectively.
Looking over the charts
Locally our market is fast approaching a key resistant point at the 5,000 mark, which for many traders forms a Fibonacci number and a round figure. Markets tend to form a magnet around key numbers so resistance at these levels will keep many traders on their toes.
Intraday we did see the market rebound off the early morning sell off but if the market cannot forge higher from here then technically we’ll see either a slightly lower high or possibly an equal high in combination with a double top. For opportunistic traders, these levels do form the best risk reward trades.
S&P/ASX 200 Gainers and Losers
OZ Minerals ((OZL)) continued its recent strong form, outperforming the top 200 stocks to post a 7.20% gain and slightly break out from its downtrend. Imdex Limited ((IMD)) also rose a better than average 7.06%, coming off the back of recent strong gains but it too has suffered significant selling pressure recently.
Billabong International ((BBG)) resumed trading today following its recent trading halt, coming off the back of yesterday’s announcement of the takeover proposal by Sycamore Partners and the news was not good, falling a disappointing 26.71%. Sundance Resources ((SDL)) followed suit, coming off the back of yesterday’s announcement to walk away from the Hanlong Mining bid, to continue its downward momentum, falling another 0.09%.
(For a more comprehensive summary of last night’s market action see FNArena’s Overnight Report.)
Disclaimer: There is a high degree of risk involved in trading various financial instruments. It is possible to lose significant amounts of money when trading the markets. As your trading decisions are beyond my control, I accept no responsibility for your trading results. Please seek professional financial advice to determine if trading is for you.
While Ashley Jessen attempts to ensure that the information herein is accurate at the date the information was produced, however, Ashley Jessen does not guarantee the accuracy, timeliness, completeness, performance or fitness for a particular purpose of any of the information provided herein and under no circumstances are they to be considered an offer, solicitation to invest or be construed as giving investment advice.
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