ASX 200 Starts December with a Bang

The Australian index drops slightly on Monday morning only to turn around and show signs of strength later in the session. The market is now above the AU$8500 level, which in and of itself has a certain amount of psychology attached to it. Ultimately, this is a market that continues to see a lot of upward trajectory, and it’s very likely that traders will look at this as a market that has consolidated after a move higher, and now the upward inertia has returned.

It’s worth noting that most other indices are doing fairly well as well, so there is a little bit of a “knock on effect” into the Australian markets, and this could very well lead to further gains in the ASX 200, as well as other indices around the world. After all, risk appetite tends to be contagious across international borders, and of course Australia will have to watch how other countries are performing.

RIO Tinto (RIO)

RIO Tinto gained 0.88%, or AU$1.040 during trading on Monday, as it is now flirting with the psychologically important AU$120 level. It’s worth noting this is an area that’s been important more than once, and of course the 200 Day EMA sits right there as well. Ultimately, this is a market that looks as if it is trying to rally right along with everything else.

Goodman Group (GMG)

Goodman Group was down AU$0.16, or 0.42% during the Monday session, but it is worth noting that the market has gone straight up for several months now. In fact, GMG is up just under 64% for the year! Because of this, a certain amount of consolidation or even profit-taking would be expected. It’s worth noting that the market recently pulled back from the AU$39 level, so that might be the next barrier that traders will keep an eye on. The 50 Day EMA is sitting just below, and it is also worth noting that there had been a significant amount of consolidation between AU$35 on the bottom and AU$37.50 above.

Aristocrat Leisure Limited (ALL)

Aristocrat Leisure gained AU$0.44 during relatively quiet trading on Monday, as traders continue to see a lot of interest in this stock. All things being equal, short-term pullbacks will continue to be attractive for traders. The market is essentially consolidating after a massive run of AU$10, so a little bit of consolidation could very well attract technical traders as it might be the beginning of a bullish flag.

The AU$0.42 dividend of course attracts a certain amount of attention, which was just announced for a payment date of Friday, December 20. Recent earnings were a bit of a disappointment, but the earnings call also showed quite a bit of optimism about the next couple of quarters. The market has been in a significant uptrend for some time, and there is nothing on the charts that suggests this is going to change anytime soon.

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