Australia | Apr 19 2013
By Ashley Jessen, director of LearnCFDs.com and author of CFDs Made Simple
Volatility among commodities combined with some impressive moves on worldwide indices has defined the week with the S&P/ASX 200 falling 1.6% as it saw red screens nearly every day due to being such a resource heavy market. On the day the S&P/ASX 200 remained relatively flat, rising a mere 7.48 points or 0.15% to close at 4931.9 on volume just over $4.5 billion.
Basic Materials bounced back significantly, rising a hearty 3.26% giving hope for those deeply entrenched in this sector. Oil & Gas was the next best performer, also recovering from recent underperformance, up a noteworthy 2.08%. Financials and Consumer Services, the stronger performers recently, underperformed the market, falling 1% and 0.61% respectively.
Looking over the charts
A doji cross sitting on support is a period of indecision in the market indicating a potential turning point and the possibility of hitting the second higher low from when the market tipped down to the 4850 mark on Friday of last week. Intraday market action appeared slightly more bearish with the market making an early run up to the 4959 level before setting an intraday low of 4916 and then settling 10 points higher on the close. Trading is often quite challenging during this ‘no man’s land’ period, with many traders waiting for a defined break either up or down.
S&P/ASX 200 Gainers and Losers
Imdex Limited ((IMD)) had an exceptional day rising 15.61% on slightly higher than average volume but provides little respite for investors who have seen the price fall some 42% since mid February. Medusa Mining ((MML)) was fortunate to run along the same lines as Imdex, rising an impressive 13.82% but it too is only recovering from significant recent declines.
Coalspur Mines ((CPL)) led the biggest losers today, falling a fast 12.5%, forcing the stock down to the lowest level since January 2010, with volume 4-5 times greater than normal. Virgin Australia ((VAH)) had a lacklustre day but well within normal daily ranges, falling a meagre 3.33% as it continues to track sideways between $0.38 and $0.46.
(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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