The ASX200 Fails to Hold Early Gains
The local market opened strongly today, putting on close to 30-points in early trade, led again by the banking sector. However, slowly but surely the market gave back its early gains and finally closed only 1 point higher, with CBA a noticeable drag on the index, closing down $0.81, or -1.06% to $75.81 after being up $0.65 earlier in the day. Overseas influences started off well following no bad news on the geo-political front, but China changed that by applying yet tighter controls on housing which smacked their influential developers.
Today, the market had a range of +/- 31 points, a high of 5710, a low of 5679 and a close of 5683, up 1 point, or +0.03%.
ASX 200 Intra-Day Chart
ASX 200 Daily Chart
Commonwealth Bank (CBA) – As we mentioned earlier, CBA reversed early gains today to close lower, we are 50-50 in the short-term, but would be buyers of weakness back under recent swing low under $73, as opposed to panic sellers.
Commonwealth Bank (CBA) Weekly Chart
Woolworths (WOW) caught our eye today for all the wrong reasons, closing down $0.16 / -0.63% at $25.19. Technically WOW looks awful targeting back below $20, when we combine this picture with the outlook for retail including Australians get used to less money in their pockets, we see no reason to be buyers of the large supermarket play.
Woolworths (WOW) Weekly Chart
Regis Resources (RRL) – One of the stocks on our “shopping list”, RRL went into our buy zone this morning before bouncing nicely. We may regret not pulling the trigger today, but as we explained in the both this morning’s report and the Weekend Report we are mindful that gold stocks usually drift / fall into Christmas hence we are being short-term cautious. We are still looking to buy RRL and hopefully we be able to buy at a more opportune time.
Regis Resources (RRL) Weekly Chart
Have a great night!
The Market Matters Team
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