Australia: S&P/ASX 200 (ASX:.AXJO) turned skittish ahead of a key meeting of central bankers
The Australian share market has given up most of its gains from Tuesday, as markets around the world turned skittish ahead of a key meeting of central bankers.
The benchmark S&P/ASX200 index finished Wednesday down 61.7 points, or 0.94 per cent, to 6,483.3 points, while the broader All Ordinaries was closed down 54.8 points, or 0.83 per cent, to 6,572.6.
With global markets having been driven higher most of the year driven by lower interest rates, traders were cautious ahead of the release of minutes from the US Federal Open Market Committee (FOMC) and the European Central Bank, as well the start of an annual meeting of central bankers at Jackson Hole, Wyoming, said IG market analyst Kyle Rodda.
“We’re looking at a market that’s just taking risk off the table today,” Mr Rodda said.
Wednesday’s drop “is disappointing, but not a surprise given the negative lead from Wall Street,” where the S&P500 dropped 0.8 per cent, said Burman Invest portfolio manager Julia Lee.
The mining, industrial, consumer staples and property trusts were all down between 1.4 and 2.0 per cent, while health care, tech stocks and utilities the only sectors to post gains.
Carsales.com gained 10.9 per cent to hit an all-time high of $15.57 after its adjusted earnings grew seven per cent to $210 million, despite tough market conditions.
Elsewhere, the big banks were all lower, led by Westpac, which fell 1.8 per cent to $27.52.
ANZ was down 1.2 per cent to $26.37, NAB dropped 0.7 per cent to $27.15 and Commonwealth was down 0.1 per cent to $77.02.
The mining sector saw collective losses of 2.0 per cent as the price of iron ore fell 2.6 per cent, with BHP dropping 2.9 per cent to $35.25, Rio Tinto falling 2.5 per cent to $83.70 and Fortescue Metals down 4.1 per cent to $7.27.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 6,640.79.
The projected lower bound is: 6,323.39.
The projected closing price is: 6,482.09.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 50.5005. This is not an overbought or oversold reading. The last signal was a buy 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 41.60. 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 32 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 -48. This is not a topping or bottoming area. The last signal was a buy 2 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 12 period(s) ago.
Rex Takasugi – TD Profile
S&P/ASX 200 closed down -61.700 at 6,483.300. Volume was 8% above average (neutral) and Bollinger Bands were 98% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 6,521.65 6,646.90 6,190.82
Volatility: 21 15 14
Volume: 692,851,072 651,453,440 627,354,752
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.
S&P/ASX 200 is currently 4.7% 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 12 periods.
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