Australia: S&P/ASX 200 (ASX:.AXJO) share market has risen for a second day as US-China trade tensions eased and Chinese trade data beat expectations

Australia: S&P/ASX 200 (ASX:.AXJO) share market has risen for a second day as US-China trade tensions eased and Chinese trade data beat expectations

Australia: S&P/ASX 200 (ASX:.AXJO) share market has risen for a second day as US-China trade tensions eased and Chinese trade data beat expectations

The Australian share market has risen for a second day as US-China trade tensions eased and Chinese trade data beat expectations.

The benchmark S&P/ASX200 index was up 48.6 points, or 0.75 per cent, to 6,568.1 points at 1615 AEST on Thursday, while the broader All Ordinaries was up 53.8 points, or 0.82 per cent, to 6,642.3 points.

The ASX followed a similar pattern to moves in the United States, losing ground in the morning before rebounding and closing the day on a high.

China set the daily fixing rate for the yuan stronger than analysts had expected, easing fears the country would significantly devalue its currency, while Chinese trade data for July showed exports rose unexpectedly.

It was a mixed day for companies reporting earnings, with Mirvac and Nick Scali moving higher while IAG and AGL fell after they disappointed investors.

The telecommunications sector was the biggest gainer, rising 1.8 per cent after Telstra gained 2.3 per cent to hit a two-year high of $3.99.

The mining sector posted the second-biggest gains, up 1.7 per cent, collectively, as BHP rose 1.5 per cent to $37.30 and Fortescue Metals gained 4.1 per cent to $7.34 while Rio Tinto dropped 1.1 per cent to $88.52.

Goldminers posted strong gains as the price of the precious metal broke $US1,500 an ounce for the first time in six years, and hit a record high $A2,215.

Newcrest MIning was up 4.1 per cent, Evolution up 1.9 per cent and Northern Star up two per cent.

The big banks were subdued, with Commonwealth up 0.3 per cent to $78.96, Westpac and NAB both up 0.1 per cent, to $28.06 and $27.73, respectively, and ANZ down 0.5 per cent to $26.81.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 6,713.27.

The projected lower bound is: 6,428.05.

The projected closing price is: 6,570.66.

Candlesticks

A white body occurred (because prices closed higher 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 28 white candles and 22 black candles for a net of 6 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 20.8820. This is not an overbought or oversold reading. The last signal was a buy 0 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 41.25. 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 23 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 -131.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 6 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 3 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 48.600 at 6,568.100. Volume was 12% above average (neutral) and Bollinger Bands were 55% wider than normal.

Open     High      Low     Close     Volume___
6,519.5006,568.1006,462.3006,568.100 690,766,016
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 6,704.04 6,628.28 6,157.85
Volatility: 19 14 14
Volume: 656,376,512 648,621,888 627,450,432

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 6.7% 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 3 periods.

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