Australia: S&P/ASX 200 (.AXJO) to rise; Woolworths hires 20,000 workers

Australia: S&P/ASX 200 (.AXJO) to rise; Woolworths hires 20,000 workers

Australia: S&P/ASX 200 (.AXJO) to rise; Woolworths hires 20,000 workers

The ASX200 benchmark index has had three straight days of gains, after finishing Thursday up 2.3 per cent while the All Ordinaries index closed up 2.58 per cent.

The Australian dollar was buying 60.66 US cents at 0700 AEDT, up from 59.14 US cents as the market closed on Thursday.

Woolworths goes on hiring spree: The supermarket has revealed it’s on the hunt for around 20,000 new employees across its stores, e-commerce, supply chain and drinks businesses.

It also plans to offer up to 5000 short-term roles to Qantas employees taking leave without pay, but will first redeploy its own ALH workers impacted by this week’s mandatory hotel closures.

Renter, landlord relief: The national cabinet is expected to decide whether renters and landlords will be granted relief during the coronavirus outbreak, with a decision set to come this afternoon.

The government is reportedly considering income tax cuts for landlords who reduce tenants’ rent, while Labor has called for a freeze on all evictions.

Life in a recession: There’s an entire generation of Australians that have never encountered a recession before, but here’s what it looks like.

Spike in tax claims to come: Rent, electricity, laptops and internet are set to be popular tax deductions in the new financial year as the Coronavirus forces many Australians to work from home for an indefinite period.

Rebound in stocks is coming: Billionaire investor Paul Tudor Jones, who predicted the 1987 market crash, says we are going to “quash” the virus, and predicts stocks will rebound soon.

Technical Indicators

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 6,087.14.

The projected upper bound is: 5,551.87.

The projected lower bound is: 4,562.09.

The projected closing price is: 5,056.98.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

Momentum Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 86.7178. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 3 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 38.00. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 2 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 -2. This is not a topping or bottoming area. The last signal was a buy 3 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 1 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed down -17.400 at 5,095.900. Volume was 37% below average (neutral) and Bollinger Bands were 250% wider than normal.

Open     High      Low     Close     Volume___
5,113.3005,236.7005,064.0005,095.900 510,805,568
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 4,933.71 6,391.81 6,616.05
Volatility: 99 58 32
Volume: 1,513,297,280 1,017,352,064 717,945,408

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.

Summary

S&P/ASX 200 is currently 23.0% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect moderate flows of volume out of .AXJO (mildly bearish). Our trend forecasting oscillators are currently bearish on .AXJO and have had this outlook for the last 22 periods.

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