By Chris Becker
Amid the storm off the US east coast which will shut down markets there tonight and probably on Tuesday, Asian equity markets were quite subdued. The ASX200 closed up 4 points to 4476. I’ll take a closer look at the bottom of the post including technical analysis of the bourse.
The Nikkei 225 had a scratch day and remains under its resistance level at 9200, the Hang Seng and Shanghai Composite slipped slightly, with the latter still playing looking like having another bull trap. The Aussie (AUD/USD) hit short term off its resistance overhead, but is still on its short term uptrend for now:
The Euro and US Dollar Index (DXY), where basically unmoved, as was gold (USD) although there has been some short term support above $1700 level, the short term downtrend continues in a tight channel:
Australian Stocks
With a subdued day, not many winners on the board. Rio Tinto (RIO) was the best of the ASX8 (the top four miners and bankers) moving up 1% and slowly building to a possible breakout above resistance at $59 per share:
Iron ore extractor Fortescue Metals Group (FMG) might be putting in a short term top with some overhead pressured in the last week as it comes back to $4, following the iron ore price:
As for the index itself, its still on trend – but only just. With the US market closed tonight, getting direction for tomorrow will be hard and we may see a short term fall below the trend line before a resumption of the uptrend. This is a very important week in macro markets – non farm payrolls on Friday night and the Presidential election next week…plus the storm….its busy busy busy
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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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