By Chris Becker
Asian equity markets were all over the place today, but the ASX200 had a scratch day, finally finishing about 4 points up just above 4500 points. I’ll take a closer look at the bottom of the post including technical analysis of the bourse.
The Nikkei 225 had a big up day – up over 1% or 100 points but still under resistance at 9200, the Hang Seng and Shanghai Composite were both off slightly, with the latter still playing the tune of a bull trap:
The Aussie (AUD/USD) had a bullish day today, possibly building to a short term uptrend coming up to resistance for a possible breakout up to 1.05:
The Euro came up again continuning its little whipsaw trade with the USD, as the US Dollar Index (DXY) slipped:
Gold (USD) had an uptick too on USD weakness, but the short term downtrend continues in its tight channel with no sign of a reversal yet:
Australian Stocks
No real winners except Telstra up 1% which is now coming up to resistance:
In the ASX8 (the top four miners and banks), Rio Tinto (RIO) was the best – up 0.4% but not really moving anywhere, whilst Newcrest (NCM) continues to get hammered on the poor gold price, where it has decisively broken the $27 support level:
As for the index itself, the KC Signal (a signal I developed to try to find turning points in overbought and oversold markets) that was triggered late last week continues to work, but we are still looking for a break of the uptrend line and the April high before getting the short shorts out to play. So for now this is a dip:
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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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