Australia: S&P/ASX 200 (.AXJO) banking royal commission weighed the finance sector

Australia: S&P/ASX 200 (.AXJO) banking royal commission weighed the finance sector

Australia: S&P/ASX 200 (.AXJO) banking royal commission weighed the finance sector

Australian shares opened the week lower on Monday as the latest round of the banking royal commission weighed the finance sector.

The S&P/ASX 200 Index fell 36.9 points, or 0.6 per cent, to 5693.7 while the broader All Ordinaries Index closed 36.4 points, or 0.6 per cent, lower at 5786.4.

“The banks are obviously a big drag and haven’t done well in the previous six sessions of the banking royal commission,” said McKenna Macro founder Greg McKenna. “On balance the pressure remains on the local market.”

The major financial institutions closed lower on Monday. Commonwealth Bank shares slipped 0.6 per cent to $68.50, Macquarie Group slid 2.3 per cent to $$116.23, ANZ closed 0.8 per cent lower at $25.16, Westpac slid 0.6 per cent to $25.12 and NAB closed at $23.58, down 0.8 per cent.

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 5,837.54.

The projected lower bound is: 5,531.94.

The projected closing price is: 5,684.74.


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 26 white candles and 24 black candles for a net of 2 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 13.5826. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 4 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 33.27. 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 buy 14 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 -148.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 4 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 1 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed down -36.900 at 5,693.700. Volume was 8% below average (neutral) and Bollinger Bands were 36% wider than normal.

Open High Low Close Volume___
5,730.6005,731.3005,682.4005,693.700 545,242,944

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

Moving Averages: 10-period 50-period 200-period
Close: 5,829.07 5,977.56 6,050.33
Volatility: 17 17 12
Volume: 570,415,680 607,464,448 582,317,056

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 5.9% below 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 52 periods.

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