Australia: S&P/ASX 200 (.AXJO) advances following a strong session on Wall Street on Friday

Australia: S&P/ASX 200 (.AXJO) advances following a strong session on Wall Street on Friday

Australia: S&P/ASX 200 (.AXJO) advances following a strong session on Wall Street on Friday

Australian shares rebounded from a loss in the back-end of last week on Monday, following a strong session on Wall Street on Friday as stocks rose on the back of a solid US employment report.

The S&P/ASX 200 Index rose 40.1 points, or 0.7 per cent, to 6221.4 while the broader All Ordinaries closed the session 40.2 points, or 0.6 per cent, higher at 6310.8.

The major resource stocks led the market on Monday as oil prices edged to a five-month high, and both US and Chinese officials signalled solid progress in trade negotiations.

BHP Group led the market, climbing 1.7 per cent to $39.89, Fortescue Metals Group rose 2.8 per cent to $8.00, Rio Tinto advanced 1.6 per cent to $101.48 and South32 closed 1.6 per cent higher at $3.88.

Woodside Petroleum closed at $34.56, up 1.4 per cent, Santos rose 2.3 per cent to $6.82, Origin Energy advanced 2.1 per cent to $7.25 and WorleyParsons climbed 3 per cent to $14.64.

Resolute Mining shares closed at $1.26 on Monday after advancing 7.7 per cent on the back of a solid quarterly production report. The gold miner said production had increased by 33 per cent for the quarter and that the company had achieved record quarterly gold production at its Syama mine in Mali.

The major banks were the biggest drag on the market although their declines were only muted. NAB fell 0.4 per cent to $24.70, Westpac closed 0.7 per cent lower at $25.88, ANZ declined 0.6 per cent to $25.80 and Commonwealth Bank slid 0.3 per cent to $70.67.

Investors are assessing prospects for further gains as a resolution to U.S-China trade discussions seems to draw nearer and the American economy flashes positive signs. Trump economic adviser Larry Kudlow said the two sides are “closer and closer” to a deal, and that top-tier officials would be talking this week. A strong U.S. jobs report Friday didn’t stop President Trump from suggesting the Fed should cut interest rates and stop shrinking its balance sheet.

In a note, Shayne ‘Jack’ Heffernan said: “We expect first quarter 2019 will be the first quarter year over year earnings growth is negative for the S&P 500 since the second quarter of 2015.”

Overall, the bias in prices is: Upwards.

The projected upper bound is: 6,327.29.

The projected lower bound is: 6,128.14.

The projected closing price is: 6,227.72.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 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 34.4252. 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 56.18. 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 21 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 36. This is not a topping or bottoming area. The last signal was a sell 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 buy 3 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 40.100 at 6,221.400. Volume was 25% below average (neutral) and Bollinger Bands were 48% narrower than normal.

Open High Low Close Volume___
6,181.3006,221.4006,181.3006,221.400 475,472,128

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 6,200.33 6,127.29 6,026.54
Volatility: 10 10 14
Volume: 623,672,192 678,598,400 608,375,488

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 3.2% above its 200-period moving average and is in an upward trend. Volatility is Our volume indicators reflect volume flowing into and out of .AXJO at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on .AXJO and have had this outlook for the last 0 periods.

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