Opinion: The storm returns Price: 3560 EXITED
Technical Points
Resistance
Major 2 3745
Minor 3700
Major 1 3655
Minor 3622
Gravitation 3589
Minor 3544
Major 1 3499
Minor 3466
Major 2 3433
Support
Analysis:
In Brief:
Overseas
US markets finished sharply lower, locking in a sixth straight session of losses, on much worse than expected retail sales figures
The Dow shed 248 points (-2.9%), the S&P500 shed 29 points (-3.4%) and the Nasdaq closed 57 points lower (-3.7%)
The UK market slumped to its lowest close in a month with financial stocks the hardest hit
The FTSE 100 closed 219 points lower (-5%)
Commodities
Oil fell away following after inventories rose to a 16-month high
Oil finished at US$37.28 a barrel, down a further 50 cents (-1.3%)
Gold declined to a five-week low with gains in the US dollar further eroding the precious metal’s appeal
Gold finished US$11.90 lower (-1.5%), closing at US$808.80 an ounce
Base metals were all weaker with aluminium (-4.2%) and lead (4.1%) the biggest losers
Ex-pat stocks
Virtually all Aussie stocks closed lower on Wednesday night
BHP down 8.6% in the UK, down 6.5% in the US. RIO down 11.3% in the UK, down 9.7% in the US
AQP down 13%, AWC down 12.3%, LGL down 8.5%
Companies
RIO – Chairman Paul Skinner to retire on 20 April, eight months ahead of schedule
AGO – announced a maiden inferred resource at Wodgina
Brokers
BHP – downgraded to Neutral (from Outperform) by CS
ERA – upgraded to Buy (from Hold) by UBS
CSR – upgraded to Neutral by CS
We’d been suggesting that the market was building toward a selldown, with other indicators of risk like key currency crosses and commodities tumbling earlier in the week, and last night the selling came to pass.
A combination of much weaker-than-expected retail sales, a sharp drop in demand for oil, and more worries from the financial stocks sent US markets into their worst performance in more than a month.
US markets were down more than 3% and are moving back to levels not seen since November.
Locally, apart from the gloom in overseas markets, we also have unemployment numbers at 11.30 this morning.
These numbers will be crucial in providing evidence in regard to how our economy is performing, and we also have RIO’s fourth-quarter production, so get ready for a big day in the market today. We are likely in for a volatile session.
Likely Price Action:
When we left you, we had open short positions entered at 3670, and commented on our strong view that price was going to rotate back down into 3560 today.
The market sold off right from the overnight open and down into the early morning session, completing what was a huge range of movement of over 150 odd points – that’s almost 4% in one night!.
The market moved well below the trade's target at 3590, but we are generally pretty happy to take a profit that is two-to-one of our risk.
Looking to today, the sell bias remains the same, as the dynamics have not changed.
There is clearly technical confluence at the downtrend line and horizontal intercept at the 3640 resistance (shown on chart).
We can expect sell pressure whilst the SPI remains under the downtrend line at 3640.
There could be some upward counter trend movement this morning, so we would not hold shorts this morning and would instead consider exiting and re-entering higher.
- Forums
- ASX - By Stock
- thursdays malaise
Opinion: The storm returns Price: 3560 EXITED Technical Points...
-
- There are more pages in this discussion • 105 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add XJO (ASX) to my watchlist
|
|||||
Last
8,091.9 |
Change
46.800(0.58%) |
Mkt cap ! n/a |
Open | High | Low |
8,045.1 | 8,091.9 | 8,045.1 |
Featured News
XJO (ASX) Chart |
The Watchlist
CCO
THE CALMER CO INTERNATIONAL LIMITED
Anthony Noble, MD & CEO
Anthony Noble
MD & CEO
Previous Video
Next Video
SPONSORED BY The Market Online