Australian Stocks: What Happened Today?

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            [8] => ((SDL))
            [9] => ((AQG))
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ASX Top Gainers & Losers plus Market Snapshot – 11 October 2013

Robust gains in the US, with the Dow Jones up 323 points or 2.18%, paved the way for one of the most exciting sessions on the Aussie market in weeks, as talk of agreement to extend the debt ceiling fuelled considerable buying action on the bourses. Tonight we’ll know more about potential confirmation around Obama’s rejection of the Republican proposal and volatility should continue to be high. At the close of the session the S&P/ASX 200 rose 83.8 points or 1.63% on volume of $3.8 billion.

Industrials had the strongest up session today in a sea of green with the sector rising a much better than average 2.03% with Real Estate Investment Trusts close behind, rising 1.99% and the Financial sector moving up 1.89%. Only one sector failed to make it into the black with Information Technology stocks struggling and down 0.08%. Consumer Staples was the next worst performer but such was the strength of today’s move higher that it was still up 0.79%.

Looking over the charts

Yesterday we talked of our Aussie market being over stretched with the majority of the top 200 stocks oversold and only 5% of stocks overbought and usually when we see this combination the snap back can be quite large. Today’s 1.63% gain is testimony to that but from here what keen traders will be eyeing off is a follow through session to bring us back up to previous highs around the 5300 level. Before that we’ll need to see a strong close above 5250 as confirmation this is a new short term uptrend and will definitely keep the potential longer term breakout on track.

ASX top 200 stock analysis

30% of stocks are showing oversold levels, 10% are showing overbought levels and 60% of stocks are currently above their long term moving average as of close of trading today. A big 13% jump of stocks from below their long term moving average to above overnight highlights how borderline the majority of our stocks are to steady uptrends or the potential of a break down lower. With markets so stretched in one direction it is never uncommon to see such rapid advances in a short space of time.

S&P/ASX 200 Gainers and Losers

Linc Energy ((LNC)) rebounded strongly today, along with many stocks but surprisingly there were only consistent gainers instead of several really big jumps. Linc Energy managed a stellar 10.36% gain on double the average volume as it diced very closely with the $1.00 mark over the last couple of days. Sigma Pharmaceuticals ((SIP)) successful hit 2 straight days of brilliant gains with today’s 7.27% rise pushing right up to new levels of resistance at $0.59 and volume as a healthy 6.8 million shares.

Top 5 gainers:

LNC LINC ENERGY +10.36%
SIP SIGMA PHARMACEUTICALS +7.27%
((IGO)) INDEPENDENCE GROUP +5.71%
((TPI)) TRANSPACIFIC INDUSTRIES GROUP +5.56%
((ARI)) ARRIUM +4.84%

Energy World Corporation ((EWC)) has been really struggling of late and today’s 7.78% drop has seen it close below support at $0.42 with plenty of work to do to turn around the depressed share price. Carsales.com ((CRZ)) has been one of the steadier climbers of late but it topped out around the $11.70 mark and unfortunately too much selling pressure saw it fall 3.05% but still be well and truly in the overall long term uptrend.

Top 5 Losers:

EWC ENERGY WORLD CORPORATION -7.78%
CRZ CARSALES.COM -3.05%
((RSG)) RESOLUTE MINING -2.63%
((SDL)) SUNDANCE RESOURCES -2.60%
((AQG)) ALACER GOLD CORP -1.56%