ASX 200 Plunges During the Tuesday Session

• ASX 200 falls right along with other global indices.
• Australia remains very mixed at the moment.
• Several stocks either at extreme highs, or lows.

During the Tuesday trading session, we have seen the Australian Stock exchange taken on the chin bit, as the ASX 200 has dropped a full percentage point, as it looks like the AU$8000 level might be looking to offer a little bit of support. That being said, the technical analysis is somewhat mixed for this index, and therefore it’s likely that we could see a lot of questions asked about the overall health and attitude of the markets.

It’s worth noting that the 50-Day EMA sits just above the AU$7900 level and is rising. This is an area that’s been important a couple of times in the past, and it looks very much like we could see a bit of a support barrier in that general vicinity. On the other hand, if we were to see this market break above the AU$8150 level, then the market could truly take off to the upside, perhaps opening up the possibility of a longer-term bullish run.

ANZ

The Australia and New Zealand Group rallied significantly during the trading session, despite the fact that the ASX 200 has fallen. In fact, ANZ is now trading just shy of AU$31, and now is showing signs of momentum picking up. The Relative Strength Index is in so overbought yet, so technical traders may look at any dip as a potential buying opportunity. Because of this, the market is likely to continue to see this is a market that is very healthy, and also a stock that will continue to attract inflows, all things being equal.

RIO

Rio Tinto has fallen rather significantly during the course of the trading session on Tuesday, as it looks like news coming out of China above potential slowdown will weigh upon the idea of commodity demand. If that’s going to continue to be the case, it does make a certain amount of sense that Rio Tinto may struggle. With this being the case, the market is likely to continue to see a lot of volatility, and with Rio Tinto at such low levels, this will be a stock that will be worth watching as it could give traders a bit of a “heads up” as to what the overall ASX 200 might do going forward.

ALL

Aristocrat Leisure Limited has quite a bit of underlying pressure at the moment, as it is threatening the AU$55 level, an area that of course a lot of people will be paying close attention to as it looks like the market is forming a little bit of an ascending triangle that people will be paying close attention to. If the market were to break above the AU$55 level, it could kick off a bit of momentum chasing, it could drive this stock a bit higher. The market also has the 50-Day EMA near the AU$52 level, which recently has been an area of significant support. If ALL were to break out, this could be yet another sign of potential risk appetite in Australia.

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