By Chris Becker
Another quiet – a little too quiet – day on Asian markets with much going on or happening. The ASX200 eventually closed in the red – just – down 3 points to 4483 after oscillating all day around its opening price. I’ll take a closer look at the bottom of the post including technical analysis of the bourse.
The Nikkei 225 jumped up 0.5%, bouncing off support whereas the Hang Seng had a scratch day the Shanghai Composite is currently down nearly 1% – although my preferred index, the Hang Seng China Enterprises (HSCE) is up after breaking out above 10,000 points recently:
Aussie bond yields remained steady, hovering around 3%, with the Aussie battler (AUD/USD) staying above support at 1.015 but below its 200 day moving average:
The Euro/USD swapped places with the US Dollar (DXY Index) today – the latter really having no direction at the moment, as you’ll read in my Technicals piece at Macro Investor this morning. The only real action was in gold (USD) which has snapped below its rangebound zone, falling over $22USD per ounce. There is very tentative support at $1735, but daylight below to $1630 – so set your stops wide if long, in my opinion:
Australian Stocks
No great big winner or loser today amongst the sectors although materials were down nearly 1%, led by gold miner Newcrest (NCM) which is right on support – this could be a short opp soon:
As for the bourse itself, heres the daily chart – although we’re still on trend I’m getting very concerned at the sideways action – no move in prices in 7 sessions now – I’m watching the 4400 point level as closely as I’m watching the 1420 point level on the S&P500…..is there a dip or correction in the works here?
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Chris Becker is an investment strategist at Macro Investor, Australia’s leading independent investment newsletter covering stocks, trades, property and fixed interest. A free 21-day trial is available at the site.
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