Australia: S&P/ASX 200 (ASX:.AXJO) on track for a strong open

Australia: S&P/ASX 200 (ASX:.AXJO) on track for a strong open

Australia: S&P/ASX 200 (ASX:.AXJO) on track for a strong open

Shares in New York surged, paced by Apple, as the US said it would delay imposing tariffs on some Chinese products. That bolstered risk sentiment and puts the ASX on track for a strong open.

ASX futures were up 32 points or 0.5% to 6524 near 4am AEST. The local currency was 0.6 per cent higher.

US stocks surged higher after the Trump administration said it would delay 10% tariffs on some Chinese products, including laptops and cell phones, driving a 4% rally in shares of iPhone maker Apple.

The news eased the fears of a recession triggered by the protracted trade war that dominated Wall Street this year and spurred a bout of volatility after President Donald Trump announced a new round of tariffs in August.

“The delay in the next round of tariffs is a positive for the tech sector and it is addressing any potential impact on the consumer as we head into year-end whether it’s back to school or holiday shopping,” said Mike Loewengart, vice-president of investment strategy at E*Trade Financial in New York.

“It’s tough to say what the timeline of a trade deal is. All indications are that China is gearing up for a protracted dispute while expectations in the US are for a much quicker resolution.”

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 6,710.74.

The projected lower bound is: 6,436.18.

The projected closing price is: 6,573.46.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white candles.

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 60.2212. This is not an overbought or oversold reading. 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 41.70. 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 sell 26 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 -63. This is not a topping or bottoming area. The last signal was a buy 2 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 sell 6 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed down -21.800 at 6,568.500. Volume was 13% above average (neutral) and Bollinger Bands were 62% wider than normal.

Open     High      Low     Close     Volume___
6,590.3006,593.3006,558.5006,568.500 695,313,088
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 6,631.93 6,640.95 6,169.89
Volatility: 19 13 14
Volume: 661,868,544 643,871,552 626,273,216

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 6.5% above 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 volume flowing into and out of .AXJO at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .AXJO and have had this outlook for the last 6 periods.

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