Australia: S&P/ASX 200 (ASX:.AXJO) shares are looking to open higher

Australia: S&P/ASX 200 (ASX:.AXJO) shares are looking to open higher

Australia: S&P/ASX 200 (ASX:.AXJO) shares are looking to open higher

Following that positive global lead, ASX 200 futures jumped 41 points, or 0.6%, on Friday night pointing to a positive start to trade for the ASX later this morning.

Eurozone shares and the US S&P 500 both jumped 1.4% on Friday on the back of talk that Germany could allow its budget to move into deficit if Germany slides into recession and on earlier comments from an ECB official pointing to a significant monetary easing at the central bank’s next meeting in early September.

The ASX 200 Index fell 178.9 points, or 2.7%, to 6,405.5 last week while the wider All Ordinaries shed 177.5 points, or 2.7% to close at 6485.9, its worst week since November last year.

The major banks weighed the market heavily. Shares in the Commonwealth Bank fell 5.4% to $75.12, ANZ lost 2.3% to close the week at $26.39, NAB slid 2.2% to $27.03 and Westpac shares did best of all, only down 1.4% to $27.82.

Technical Indicators

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 6,564.99.

The projected lower bound is: 6,246.91.

The projected closing price is: 6,405.95.

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 27 white candles and 23 black candles for a net of 4 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 27.0531. This is not an overbought or oversold reading. The last signal was a sell 1 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 32.36. 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 29 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 oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 5 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 9 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed down -2.600 at 6,405.500. Volume was 22% above average (neutral) and Bollinger Bands were 98% wider than normal.

Open     High      Low     Close     Volume___
6,408.1006,425.3006,396.0006,405.500 758,256,448
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 6,535.87 6,647.66 6,180.94
Volatility: 24 15 14
Volume: 707,125,120 652,328,576 627,998,848

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 3.6% 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 9 periods. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.

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