Australia: S&P/ASX 200 (.AXJO) shares extend gains; miners shine on metal prices
Australian shares extended their record-breaking spree to a fifth session on Monday, mainly driven by mining stocks that gained on strong metal prices.
The S&P/ASX 200 index touched a fresh peak of 7,092.50 points before paring some gains to finish at 7,079.50, a new record closing high.
The benchmark, which crossed the 7,000 threshold in one of the sessions last week, had capped a weekly gain of about 2%, aided chiefly by the positive sentiment around the midweek sealing of the Phase 1 Sino-U.S. trade deal.
The heavyweight Metals and Mining index contributed most to the benchmark gains, tacking on 1.4%, as copper futures hovered around an eight-month high and Dalian iron ore futures touched their highest level since Jan.9.
The world’s biggest miner BHP Ltd gained 1.6% to scale a near six-month high, a day ahead of its quarterly production results.
Another diversified global miner, Rio Tinto, closed up 0.9%, while iron ore-focused player Fortescue Metals Group put on about 3.7% to finish at a record close.
Meanwhile, stronger oil prices buoyed energy stocks with the sub-index snapping two sessions of losses to close 0.4% higher.
Oil prices rose to their highest in more than a week after two large crude production bases in Libya began shutting down amid a military blockade, setting the stage for crude flows from the OPEC member to be cut to a trickle.
Beach Energy gained 3.6% and was the top percentage gainer on the energy sub-index.
However, the Financials index edged down, finishing about 0.1% lower with health insurer NIB Holdings Ltd becoming the top percentage loser in the index.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 6,803.70.
The projected upper bound is: 7,243.77.
The projected lower bound is: 6,932.00.
The projected closing price is: 7,087.89.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 31 white candles and 19 black candles for a net of 12 white candles.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 93.4374. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 10 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 71.74. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 137 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 120.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 9 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 7 period(s) ago.
Rex Takasugi – TD Profile
S&P/ASX 200 closed up 15.400 at 7,079.500. Volume was 27% below average (neutral) and Bollinger Bands were 80% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 6,949.33 6,798.38 6,615.27
Volatility: 9 15 14
Volume: 498,934,848 553,591,040 609,589,248
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
S&P/ASX 200 is currently 7.0% above its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of .AXJO at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on .AXJO and have had this outlook for the last 7 periods. Our momentum oscillator is currently indicating that .AXJO is currently in an overbought condition.
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