ASX 200 Rallies Wednesday 

• ASX 200 firmed Wednesday.  

• Mixed signals from various companies.  

• Global indices continue to show hesitation in what is overall a bullish trend.  

Indices around the world have seen quite a bit of noisy behaviour, and the ASX 200 has been no different. Bouncing from the 50 Day EMA, it suggests that the uptrend is still very much intact, but it’s also worth noting that the ASX 200 has been somewhat range bound for the last month or so. Perhaps it is just simply the market trying to digest gains, perhaps it is a market that just doesn’t know what to do next.  

All things being equal, indices around the world are paying close attention to whether or not the central banks around the world will loosen monetary policy, and of course whether or not global growth continues to strengthen or fall. In general, this is a market that seems to be working off some excess froth, but at this point the only thing that looks like we are being offered is volatility and choppiness.  

RIO Tinto (RIO)  

RIO Tinto found itself on the wrong end of the market on Wednesday, as the materials giant lost 3.3% during the day, or AU$3.88. Because of this, the market is plunged toward the AU$113 level, an area that has seen some action in the past. Ultimately, most of what will happen next is probably at the whims of the commodity markets, but that being said, the market is likely to pay close attention to the AU$110 level, and then possibly the AU$105 level. The recent selloff has been quite brutal, so at this point in time most traders will be stepping to the sidelines and looking for some type of stability before trying to get involved.  

Suncorp Group Ltd (SUN)  

Suncorp Group dropped 0.8% for the trading session, losing AU$0.15. That being said though, the market has been extraordinarily strong for Suncorp, as the market is threatening the AU$19 level. The 50 Day EMA is near the AU$18 level and rising.  Volume is a little bit lacklustre, but at the end of the day, this is still a very bullish trend. As price appreciation continues, the AU$0.44 dividend becomes less of a factor in what has been a very strong year for the financial giant.  

Origin Energy Ltd (ORG)  

Origin Energy ended up 0.9% for the trading session, gaining AU$0.09 over the. It is above the 50 Day EMA, which is also offering technical support, and at this point Origin is now above the AU$10 level. The dividend of AU$0.275 will continue to be something that longer-term traders will focus on as well. The market has seen continued support near AU$9.45, but it’s worth noting that the volume has been somewhat light as Origin seems to be working off and perhaps even working out some of the questions asked of it earlier this year.  

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.