Australia: S&P/ASX 200 (.AXJO) a little bit of improvement

Australia: S&P/ASX 200 (.AXJO) a little bit of improvement

Australia: S&P/ASX 200 (.AXJO) a little bit of improvement

The Australian share market rallied early in the day following strong gains on Wall Street, but then faded throughout the day.

The benchmark S&P/ASX200 index still managed to close higher, up 26.1 points, or 0.41 per cent, to 6,358.5 points at 1615 AEST on Wednesday, while the broader All Ordinaries was up 26.9 points, or 0.42 per cent, to 6,443.6.

“A little bit of improvement,” and the market’s second up day in a row after losing ground six of the eight previous trading sessions, CommSec analyst Steven Daghlian said.

There were gains most everywhere, except the traditionally defensive sectors of health care, telecos, utilities and property, as well as gold miners.

Tech stocks were the biggest gainers, collectively up 2.1 per cent, with Afterpay surging 7.1 per cent to $23.90 after announcing that a year after launching in the United States, it had reached 1.5 million US customers and had signed up 3,300 US retailers.

The financial sector was up 1.2 per cent as a whole, with all of the big banks in the green following the Reserve Bank’s decision on Tuesday to cut interest rates.

Westpac share gained 1.4 per cent to $27.62, the Commonwealth Bank jumped 1.2 per cent to $79.39, ANZ was up 0.9 per cent to $28.01 and NAB gained 0.8 per cent to $26.64.

The mining sector was more subdued, up 0.1 per cent, with BHP up 0.6 per cent to $37.54 and Rio Tinto up one per cent to $99.51.

Gold miners were down, with Evolution Mining falling 5.6 per cent to $3.88 and Newcrest down 1.3 per cent to $27.95.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 6,273.90.

The projected upper bound is: 6,477.51.

The projected lower bound is: 6,246.02.

The projected closing price is: 6,361.77.

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 31 white candles and 19 black candles for a net of 12 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 12.8442. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 7 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 49.04. 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 9 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 -85. This is not a topping or bottoming area. The last signal was a buy 0 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 4 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 26.100 at 6,358.500. Volume was 2% below average (neutral) and Bollinger Bands were 31% wider than normal.

Open High Low Close Volume___
6,332.4006,387.6006,332.4006,358.500 624,941,504

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 6,412.49 6,309.47 6,042.95
Volatility: 10 12 14
Volume: 647,192,448 593,724,608 620,171,264

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 5.2% above its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. 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 0 periods.

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