Trading Day: 27th June

The S&P/ASX 200 has fallen over one percent on the open this morning, and continues to fall after midday, now at 4455 points, down 53 points or 1.19%.

Asian markets are also down, with the Nikkei down 0.86 percent to 9595 points, and the Hang Seng down 0.55% to 22,048 points.

Other risk assets are also down, with the AUD dropping below critical support at 1.05 against the USD, now at 1.0441, whilst gold continues to make similar losses and is also just above support at $1502 USD an ounce. WTI crude is down again at $90.54 USD per barrel.

Movers and Shakers
It’s completely red across the board with all sectors hit. The four major banks are down from 0.3% (Westpac) to 1.3% (CBA) in falls.

BHP is down 0.7% to $42.05, whilst RIO is down 1.03% to just below $80 per share.

In other ASX200 stocks, Gindalbie Metals (GBG) is the only standout, up 4.4% whilst Caltex (CTX) is slightly up at $11.17.

The main moves are down, with Downer EDI (DOW), Paladin (PDN) and Nexus (NXS) all suffering falls around 5%, with many more commodity/resource stocks falling.

Daily Chart
The daily chart shows how the current price activity continues to hover around around the low point of the Japanese/MENA lows of March. 4500 points is now resistance (i.e the price above the market is not willing to pay) switching from support.

Note that on any rebound, prices are failing to bust the upper channel line at approx. 4560 points. Continued bearish action and a generally new “risk off” phase across asset markets means that a failure to close above 4500 points implies a target of 4200 points for the index.

Daily candlestick chart with 63 day moving average (grey line)

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Comments

  1. Prince, what do you think of Karoon (KAR) at these levels? It has dropped like a stone in the last week and is starting to look cheap, although obviously risky, it does have very desirable assets.