ASX 200 Continues to See Buyers on Dips

• ASX 200 fell early, but turned around to show signs of strength into the close.
• Commodities remain a mixed bag, although are overall positive.
• Materials sector trying to recover from what had been a horrible year.

During the trading session on Wednesday, we saw the ASX 200 drop fairly significantly, only to turn around and show signs of life again. By doing so, the market formed a somewhat bullish candlestick, and it looks like the ASX 200 is trying to reach higher levels again. The 8,500 level has been resistive, but the market has tested above there a couple of times, albeit temporarily. That being said, the market has seen a lot of volatility but that’s nothing new and it should be somewhat expected due to the fact that there are so many concerns around the world when it comes to risk appetite, and of course commodity markets, albeit bullish in multiple markets, are a bit erratic at the time also.

Aristocrat Leisure Limited (ALL)

Aristocrat Leisure was down 0.37% during the session, closing at AU$69.19. However, the market has been extraordinarily bullish for some time, gaining 76.06% for the year, and threatening to break above the psychologically important AU$70 level. The market recently pulled back to AU$66 but has seen upward momentum since. Holders have recently seen the ex-dividend date come and go, setting up for holders to get an AU$0.42 dividend. As things stand now, the trend is very much intact.

BHP Group Limited (BHP)

BHP Group rallied almost 1% for the session, to close at the AU$41.05 level. The materials giant has struggled this year, as it is still down 11.76% over the last 12 months. The last month has seen slightly over 4% and losses, but it does look as if the stock is trying to turn things around. With copper prices rising, and an expected $14 billion investment in a Chilean facility, BHP is starting to bounce from extreme Lows. It’s worth noting that the AU$38.75 level has served as support previously. Technical traders will be watching the 50 Day EMA near the AU$41.45 region above.

Fortesque Limited (FMG) 

Fortesque Limited saw a strong 1.39% gain for the trading session, as the materials giant continued to try to claw back some of the massive losses for the year. Over the last 12 months, FMG is down 21.42%, but over the last month is up 1.08%. Ultimately, Fortesque is benefiting from metals increasing in value, especially industrial ones. That being said, it looks like the market shied away from AU$20, as although the day was positive, once the stock broke above the AU$20 level, it turned things right back around.

Origin Energy Limited (ORG)

Origin Energy lost 65c during the trading session, to close at the AU$10.70 level. That being said, the utilities giant is up 33.25% for the year, and a little over 10% for the last 30 days. In other words, a pullback is very slight in what has been an extraordinarily bullish run over the last several months. Further suggesting that buyers are still out there is the fact that the market bounced significantly from the lows of the session. As things stand right now, ORG is near the previous massive high, and a new all-time high is within sight.

Disclaimer: The material provided here has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research we will not seek to take any advantage before providing it to our client. No representation or warranty is given as to the accuracy or completeness of this information and therefore it shouldn’t be relied upon as such. Any research provided does not have regard to specific financial situations, needs or investment objectives. Vantage accepts no responsibility for any use that may be made of these comments and for any consequences that result. Consequently, any person acting on it does so entirely at their own risk. We advise any readers of this material to seek professional advice where necessary. Without the approval of Vantage, reproduction or redistribution of this information isn’t permitted.