Australia | Apr 26 2013
By Ashley Jessen, director of LearnCFDs.com and author of CFDs Made Simple
Overseas markets ended the session slightly mixed after posting strong intraday gains that eventually got sold off late in the session, which provided little direction for the S&P/ASX 200, which remained flat, falling a meagre 4.93 points or 0.1% to close at 5097.5 on steady volume above $4 billion.
Materials’ stocks well and truly outperformed all others, rising an above average 1.91% with Telecommunications stocks being the only other sector in the black, up a handy 0.82%. At the other end of the scale, Health Care stocks suffered the worst, falling 0.88% whilst Consumer Staples failed to gain ground, down 0.79%.
Looking over the charts
Distributive selling at the top of the recent uptrend will give bulls reason to perhaps sit on the sidelines for a couple of days, pending the potential breakthrough of the most recent highest resistance at the 5165 level. Stochastics is almost showing a bearish divergence signal which is one of the strongest signals in the market but smarter traders will be watching for the next potential pull back to hit a higher low and a subsequent higher high.
S&P/ASX 200 Gainers and Losers
Silver Lake Resources ((SLR)) gapped up strongly and continued the momentum to the upside, rising an impressive 20.49% but this does come off the back of significant selling pressure dropping the price from $2.30 to under $1.00 in 2 months. Acrux ((ACR)) gapped up very strongly off the back of announcing strong quarterly sales for its drug Axiron with the market pushing the price to fresh 8 month highs, up 19.13%.
Ten Network Holdings ((TEN)) failed to impress today, falling an uneventful 4.69% on much lower than average volume. Skilled Group ((SKE)) came under pressure from the sellers, falling 4.22% and sits ominously close to hitting fresh 2 month lows once the $2.90 mark is breeched.
(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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