Australian Stocks: What Happened Today?

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By Ashley Jessen

 

Australia Day long weekend seemingly provided a boost to business confidence, hitting a new 2.5 year high, but was not enough to pull the S&P/ASX200 out of negative territory.

What are traders talking about today?   
•    S&P/ASX200lost65.8 points or -1.26% on volume of $4.6 billion, closing at 5175.1.
•    In aftermarket trading, Apple reported that they beat earnings but have missed on iPhone sales and suggest a lower guidance going forward.
•    Dow Jones has suffered 5 consecutive losing sessions.
•    Gold was down $7.60 or 0.60% in Monday trading.
•    Brent Crude Oil was down $1.10 to $106.78 per barrel.
•    Data coming out of China is being questioned heavily with suggestion of fake trade numbers.

Economic news

•    National Australia Bank (NAB) business confidence numbers have come in showing an improvement of 7 points to 2.5 year highs.
Australian sector watch

Looking over the charts

•    Markets fell swiftly in early trading, catching up with and extremely negative trading session Friday night in the US, falling over 80 points but managed to contain the losses and rebound to post a negative 56.2 figure on the day.
•    There was a fair degree of distributive selling from the intraday highs to suggest a bounce back could require more impetus to run its course.
•    Minor support is sitting around 5140 but lows are getting lower and highs are getting lower, which is a short term bearish signal.
•    There is no bullish divergence either so at best we might expect a consolidation at this level or a drop to sub 5100 levels.

ASX top 200 stock analysis

45% of stocks are showing oversold levels, 7% are showing overbought levels and 35% of stocks are currently above their long term moving average as of close of trading today. View the image below to better understand overbought and oversold levels.

S&P/ASX 200 Gainers and Losers
Top 5 gainers:
•    JBH    JB HI-FI +4.92%
•    ARI    ARRIUM +3.31%
•    DOW    DOWNER EDI +2.47%
•    MYR    MYER HOLDINGS +2.40%
•    ILU    ILUKA RESOURCES +2.31%
Top 5 Losers:
•    LYC    LYNAS CORPORATION -6.25%
•    RSG    RESOLUTE MINING -6.09%
•    TRS    THE REJECT SHOP -5.65%
•    VAH    VIRGIN AUSTRALIA HOLDINGS -5.41%
•    BRU    BURU ENERGY -4.70%

 

Reprinted with permission of the publisher. Content included in this article is not by association the view of FNArena (see our disclaimer).