By Chris Becker
Asian markets were again mixed today (that’s code for – the markets went down). The ASX200 slipped again, down 0.3% of 12 points to 4372 points – I’ll take a closer look at the bottom of the post including technical analysis of the bourse.
The Nikkei 225 actually had an up day but barely, with the Hang Seng having another scratch day. The Shanghai Composite also slipped down a few points in what has been a really muted response to QE3.
The Aussie battler (AUD/USD) actually climbed throughout the Asian session after dipping last night and is currently just above 1.04 against King Dollar. The Euro/USD is kind of doing the same, but recently had a fall going into the London open, and is just above 1.29 whilst the US Dollar (DXY Index) is building on its small uptrend but still hitting resistance at 79.8 points:
Meanwhile, spot gold (USD) continues to bounce off heavy resistance at $1780, with support at $1760:
Australian Stocks
As you can see in the table above, materials stocks continue to decline, down 1%, with only IT stocks having any real gains today. Woodside Petroleum (WPL) is slowly following the price of crude and has nearly retraced back to its most recent breakout:
As for the broader index, here’s the daily chart where the retracement I expected to the uptrend or 50 day moving average (the grey line above the red line, which is the 200 day moving average) continues to transpire, and hopefully a rebound soon, although there is strong support at 4200 points.
These daily updates need to be placed in context with the longer trends and drivers amidst the overall technical picture, where Former “Trading Week” readers will find it reborn as “Technicals“, published 8.30am each Monday morning.
Chris Becker is an investment strategist at Macro Investor, Australia’s leading independent investment newsletter covering stocks, trades, property and fixed interest. Each week Macro Investor publishes tables on the top ten most undervalued and overvalued stocks on the ASX. A free 21-day trial is available at the site.
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