Australian Stocks: What Happened Today?

Array
(
    [0] => Array
        (
        )

    [1] => Array
        (
        )

)

Iron Ore stabilises with Australia’s leading mining companies rebounding in early trading but giving back those losses by the end of the session as the Aussie 200 index flat lines.

What are traders talking about today? 

• S&P/ASX200 gained 2.5 points or +0.05% on volume of $3.9 billion, closing ­­at 5489.1.

• Iron Ore futures pricing continues to prove troublesome for any potential growth on the Aussie market, with Dalian and rebar futures pricing either flat or slightly negative, which means our leading mining companies, which make up a significant part of our index, continue to flat line or push lower.
• Copper prices have been on the tip of many traders tongues, given the situation in China in using the metal as collateral for margin loans, but the price itself hasn’t really moved a lot but the short term trend is on the positive.
• The Aussie Dollar managed to find support after yesterday’s Iron Ore scare, which sent the Aussie Dollar to a low of 0.9227 but has since rebounded and is currently sitting at 0.9284 as I type.
• Volatility continues to cause concern for many traders, sitting at extremely low levels and volume on the likes of the S&P500 index remains at multi year lows on a daily basis, causing quite the concern as to who is driving the current upswing in the markets.
• Many of the world’s leading indices continue to come off multiple lower highs with some hitting multiple lower lows and we’ll keep an eye on any upcoming warning signals if an immediate downtrend is possible in the short term.

Economic news

• There was no significant economic news out of Australian today.
• In the US we see ADP employment figures for April due out tonight, GDP advance for the March quarter and day two of the Federal Reserve meeting.
   

Australian sector watch

Looking over the charts

• Despite an early morning bounce, the Aussie 200 index was unable to keep its head in the black, falling into negative territory 30 minutes after the open. Having said that, bullish investors did decide to ‘buy-the-dip’ and push the market back into the black by the close of the session.
• After yesterday’s heavy sell off bearish engulfing pattern we can note that the market has stabilised somewhat, but with China’s new information regarding Iron Ore, it may take some time for the investor psychology of those in the big mining stock’s to readjust to a more bullish stance.
• Support continues to sit around the 5520-5565 level with the next few days being quite critical for any potential turn back up to recent highs.
• Stochastics continues to turn south from the overbought territory, which is a bearish signal but with recent lows and highs getting higher, it takes a bold trader to be betting against the current strong uptrend in place.
   

ASX top 200 stock analysis

20% of stocks are showing oversold levels, 24% are showing overbought levels and 61% 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:

• HZN       HORIZON OIL +7.04%
• IGO        INDEPENDENCE GROUP NL +4.59%
• PNA       PANAUST +4.22%
• SIR          SIRIUS RESOURCES NL +3.86%
• TSE         TRANSFIELD SERVICES +3.80%

Top 5 Losers:

• ACR        ACRUX -5.91%
• SXY         SENEX ENERGY -4.32%
• MML     MEDUSA MINING -4.00%
• EVN       EVOLUTION MINING -3.93%
• SKE         SKILLED GROUP -3.52%