XAO - All Ordinaries
A fall of 1.5% to 3,304.10 keeps the index above the years end-of-day low of 3000.2 (23/01/2009) helped by a strong close. The index was down over 80 points during the day. Big miners were down including ex-dividend BHP down $1.20 to $29.31 and RIO down $3.42 to $46.87.
RIO - Rio Tinto
RIO closed below support (although not on strong volume) indicating a test of the lower trend channel line (or 50MA).
RIO - RIO Tinto
As indicated in Chart Watch 2009-02-7, RIO Tinto had potential to break through short term resistance. Today RIO had a strong positive candle above this resistance on above average volume. Target $60, but may fall short in the pulse.
Making Lows
A range of stocks are either testing, or made new lows today. Included in this list are AMP, are ANZ and are WES.
AMP
ANZ
WES - Wesfarmers
RIO - RIO Tinto
Recently broken trend-line dating back to September 2008.
Broken through 50-day moving average
Volume increasing past couple of weeks
Short term support around $36.30
What for RIO to close above $46.93. A close above this could indicate a move up towards resistance of around $60.00
Sounding like a broken record but another good lead from the US (DOW, S&P 500 and NASDAQ all up over 3%), but this time the ASX could not manage to follow through. The S&P 500 looks to be testing the 50MA, so the next couple of days should be interesting, especially to see if the market can shake off any further bad news.
Bad news seems to be plentiful for the Australian Market
* Commonwealth Bank to sell $1.25bn in 3 and 5 year bonds (CBA down 8%)
* Wespac raises $2.5bn capital
* Pacific Brands cut dividend forecast by about 65 per cent
* Panel of economists give Australia a 40% chance of entering a recession
Good news included
* Resources up after higher commodity prices (with BHP Billiton rising 4.51 per cent to $28.45, and Rio Tinto lifting 3.95 per cent to $33.35, while fellow iron ore miner, Fortescue Metals Group, rode the wave, climbing 7.33 per cent to $2.34)
* Three sources indicate potential Chinese suitors for Oz Minerals (OZL)
Trends*
Long Term - Down
Intermediate - Down
Short Term - Up
*10MA, 30EMA and 200MA used to determine trends
XJO - ASX 200
After a good lead from the US (DOW, S&P 500 and NASDAQ all up over 3%) shaking off some negative job data, our market has followed through with a 4% gain, also shaking off the ANZ job ad numbers. XJO ended the day at 3631.60 (up 4.06%).
Some other of the negative news out today which the market seemed to ignore include;
BHP may require to cut iron ore production
RIO could cut thousands of jobs
Harvey Norman (HVN) warned some of its stores could close
Trends*
Long Term - Down
Intermediate - Down
Short Term - Up
*10MA, 30EMA and 200MA used to determine trends
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