Australian Stocks: What Happened Today?

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Weak leads in Europe greeted the US markets, which also reacted negatively on open, but managed to climb out of the red before finished the day relatively flat. This choppy market action did little to inspire our market, which promptly fell 25 points on open before moving in identical fashion to its US counterpart to finish the day relatively flat. At the close of trade the S&P ASX 200 was up 1.8 points or 0.03% on volume of $3.7 billion.

September International Trade numbers came in today, which take a look at imports and exports and they have surprised to the upside, citing a trade deficit of $284 million versions analysts expectations of a $350 million deficit. This didn’t really have much of an effect on the local index but the Aussie Dollar bounced higher by just over 40 pips.

Quite an even spread of winners and losers across the sectors with the biggest gains seen across both Materials and Telecommunications Services, rising 0.64% and 0.61% respectively. Unfortunately Health Care pulled back from recent highs to post a drop of 0.96% whilst the Consumer Discretionary sector fell 0.91%, further extending its consolidation since October 21.

Looking over the charts

Momentum to the upside seems to be struggling at this junction but more importantly, we are not seeing any nervous investors looking for the sell button either. We find ourselves yet again in no-man’s land with the market bouncing between support and resistance around the 5400 – 5450 levels, which provides little opportunity for short term traders trying to ride the volatility as a 50 point range doesn’t provide that much. Savvy traders will be setting their support and resistance levels and monitoring a break out of these levels, either up or down, over the next few days to weeks.

ASX top 200 stock analysis

38% of stocks are showing oversold levels, 15% are showing overbought levels and 60% of stocks are currently above their long term moving average as of close of trading today. Despite our market flat lining we are currently sitting on the highest number of oversold stocks in nearly 1 month, which would suggest an opportunity for a potential long trade and with a potential breakout imminent, it will pay to keep a close eye on those breakout levels and any short term intraday strength.

S&P/ASX 200 Gainers and Losers

Atlas Iron was positioning itself for a short term breakout into fresh 7 month highs and today finally popped, rising 7.34%, breaking through resistance at $1.10 and climbing on three times the average volume. Fortescue Metals broke through resistance at $5.60 with an absolute blast, rising 5.61% on above average volume and hitting the highest price in 19 months.

Top 5 gainers:

• ((AGO)) ATLAS IRON +7.34%
• ((FMG)) FORTESCUE METALS GROUP +5.61%
• ((OGC)) OCEANAGOLD CORPORATION +4.90%
• ((MGX)) MOUNT GIBSON IRON +4.81%
• LYC LYNAS CORPORATION +4.29%

Alacer Gold has been struggling to hold on to support at $2.90 and despite the recent triple bottom suggesting a chance to hold these levels, the market gapped through on significantly higher volume, falling a disappointing 9.44% on the day. Medusa Mining is also sitting on fairly significant support levels just below the $2.00 mark and the descending triangle formation is an ominous sign and one to watch going forward, especially after today’s 5.88% fall on steady volume.

Top 5 Losers:

• ((AQG)) ALACER GOLD CORP -9.44%
• ((MML)) MEDUSA MINING -5.88%
• ((DCG)) DECMIL GROUP -5.37%
• ((SBM)) ST BARBARA -4.60%
• ((FXJ)) FAIRFAX MEDIA -4.17%