ASX 200 Continues to Correct

• Australia remains influenced by mainland China.
• Interest rates around the world continue to climb, except for China.
• ASX continues its correction.

During the trading session on Monday, we saw the ASX 200 drop again, losing about 0.66% as New York came online and Australia went to bed. All things being equal, it is worth noting that we are still very much in a massive consolidation area, but the fact that we are below the 8,200 level suggests that we are going to continue to see downward pressure.

Underneath, the 200 Day EMA sits right around the 8,000 and is rising. As we are between the 200 Day EMA and the 50 Day EMA indicators, it is quite common to see a bit of volatility and choppiness in the market. Beyond that, we also need to consider that China’s slumping economy significantly impacts Australia and will remain closely monitored.

RIO Tinto (RIO)

RIO Tinto initially tried to rally on Monday but gave back a significant portion of its gains, as the 200-day EMA presented substantial resistance. The 0.21% loss of course isn’t a massive one, but it’s worth noting that the materials giant is down 8.02% over the last year. This suggests ongoing uncertainty about the growth of the global economy, but it is worth noting that many commodities are likely to come into focus due to inflation. On the other side of the equation, of course, is the fact that China’s slowdown directly impacts RIO.

Suncorp Financials Group (SUN)

Suncorp Financials had a tough session on Monday, dropping 2.24% as the financial giant failed to test the 50 Day EMA. It’s worth noting that volume is still somewhat anemic, as it looks like the market is trying to do everything it can to digest the gains from the past year. Speaking of the past year, despite the fact that Monday was so tough, Suncorp Financial is up a whopping 39.83% for the year. There is an earnings call on February 12 that traders will be focusing on, as the last one was so strong for SUN.

Perth Mint Gold (PMGOLD)

Perth Mint Gold opened higher on Monday, experienced some fluctuation, and ultimately settled near its opening level. This is an exceptionally strong development, as the company is testing the AU$44 level. Furthermore, it marks a breakout, reinforcing the prevailing strong uptrend. In fact, over the last year we have seen 44.12% in gains, and there’s literally nothing on this chart that suggests we are about to see anything change. With this being said, it looks as if there is significant interest in this stock near the AU$42.50 region. Ultimately, Perth Mint continues to be one of the better performers in Australia.

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