Australia: S&P/ASX 200 (ASX:.AXJO) spent most of the day in red, then jumped 12 points on close to be higher

Australia: S&P/ASX 200 (ASX:.AXJO) spent most of the day in red, then jumped 12 points on close to be higher

Australia: S&P/ASX 200 (ASX:.AXJO) spent most of the day in red, then jumped 12 points on close to be higher

A surprise jump in BHP and banking shares during the 4pm settlement has sent the S&P/ASX 200 from being in the red at 6578 points on the closing bell to being 6 points higher at 6590 after final settlement. BHP jumped from $36.88 at 4pm up to $37.01 during close, and Commonwealth Bank jumped from $79.71 at 4pm up to $79.94.

At the end of the day the index is evenly split with 99 companies higher, 86 lower and 15 unchanged.

The most points were contributed by CSL rising 1.3 per cent to $222.78 and modest rises in the big four banks. Wesfarmers rose 0.8 per cent to $39.11 and Woolworths closed 0.7 per cent higher at $35.64. JB HiFi closed 10 per cent higher at $30.75 after posting its full year results today.

The materials sector dragged heavily today, falling 1.5 per cent and taking away 17 points. Newcrest Mining fell 3.3 per cent to $37.34, Rio Tinto is at six-month lows falling 2.7 per cent to $85.28, and Telstra dropped 1.3 per cent to $3.93.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 6,735.23.

The projected lower bound is: 6,453.10.

The projected closing price is: 6,594.17.

Candlesticks

A white body occurred (because prices closed higher 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 29 white candles and 21 black candles for a net of 8 white candles.

A hammer occurred (a hammer has a long lower shadow and closes near the high). Hammers must appear after a significant decline or when prices are oversold (which appears to be the case with S&P/ASX 200) to be valid. When this occurs, it usually indicates the formation of a support level and is thus considered a bullish pattern.

A hanging man occurred (a hanging man has a very long lower shadow and a small real body). This pattern can be bullish or bearish, depending on the trend. If it occurs during an uptrend it is called a hanging man line and signifies a reversal top. If it occurs during a downtrend (which appears to be the case with S&P/ASX 200) it is called a bullish hammer.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

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.

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 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 47.3745. This is not an overbought or oversold reading. The last signal was a buy 2 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 43.41. 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 25 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 -71. This is not a topping or bottoming area. The last signal was a buy 1 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 5 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 5.900 at 6,590.300. Volume was 20% below average (neutral) and Bollinger Bands were 60% wider than normal.

Open     High      Low     Close     Volume___
6,584.4006,590.3006,555.1006,590.300 493,337,280
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 6,659.59 6,635.99 6,165.37
Volatility: 19 14 14
Volume: 652,490,496 642,539,712 627,069,376

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 6.9% 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 5 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

You must be logged in to post comments :  
CONNECT WITH