Australia | Apr 17 2013
By Ashley Jessen, director of LearnCFDs.com and author of CFDs Made Simple
Momentum off the back of the recent sell off below the 4900 mark has the bulls getting ready for a potential break out above the critical 5035 mark with the US Markets providing a positive charge to the local S&P/ASX 200, rising 53.75 points or 1.09% to close at 5004.6 on volume of $4.8 billion.
Green screens dominated today especially among the Technology and Telecommunications Sectors with both up a resounding 3.32% and 2.68% respectively. Only two sectors failed to post a positive return with Basic Materials down 0.51% and Oil & Gas down 0.59%.
Looking over the chart
Once again the 5000 mark has come into play with today’s positive close above, signalling a positive sign to the bulls but technical traders will be monitoring the price action closely as resistance and a triple top looms. A close above 5035 will be the critical positive sign for a bullish trend going forward and will cancel the potential lower high for any price action below that mark.
S&P/ASX 200 Gainers and Losers
Ten Network Holdings ((TEN)) managed to outperform all others across the top 200 stocks, rising an impressive 5.26% but still failing to get out of a long term consolidation phase. M2 Telecommunications ((MTU)) provided one of the more picture perfect breakouts to the upside, rising 5.22% on slightly higher than average volume.
Discovery metals ((DML)) managed a picture perfect downside breakout, falling a massive 9.20% and hitting the lowest price since September 2009 and capping an incredible 75% loss since January this year. Ausdrill ((ASL)) had a wild session today after coming back online from yesterday’s trading halt and the news wasn’t good, falling an disappointing 8.96% and hitting a price not seen since September 2010.
(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.
Technical limitations
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