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Tuesday, December 7, 2021

Australia: S&P/ASX 200 (.AXJO) banking sector continues to drive this positivity

Australia: S&P/ASX 200 (.AXJO) banking sector continues to drive this positivity

After rising 1.74% on May 20 on the back of a surprise election victory for the incumbent, Scott Morrison, Australia’s S&P/ASX 200 gained again on May 21. The index fell in early trading but maintained a positive trajectory thereafter.

With markets anticipating a rate cut in June, the Australian dollar fell to 0.6872 against the US dollar, close to its three-year low.

The banking sector continued to drive this positivity.

The iShares MSCI Australia ETF (EWA) gained 2.15% on May 20 as we expected. The ETF was up 0.32% in premarket trading at 4:17 AM EDT today. The iShares MSCI ex-Japan ETF (EPP), which invests heavily in Australia, gained 0.97% on May 20.

New Zealand’s NZ 50 fell 0.18% on May 21.

Overall, the bias in prices is: Upwards.

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

The projected upper bound is: 6,613.97.

The projected lower bound is: 6,395.68.

The projected closing price is: 6,504.82.


A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 white candles.

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 95.4695. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 15 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 69.97. 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 16 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 212.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 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 buy 1 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 24.000 at 6,500.100. Volume was 9% above average (neutral) and Bollinger Bands were 4% narrower than normal.

Open High Low Close Volume___
6,476.1006,500.1006,444.4006,500.100 669,321,664

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

Moving Averages: 10-period 50-period 200-period
Close: 6,336.63 6,256.31 6,036.10
Volatility: 13 11 14
Volume: 594,364,928 600,740,416 614,557,376

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.


S&P/ASX 200 is currently 7.7% above its 200-period moving average and is in an upward 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 bullish on .AXJO and have had this outlook for the last 23 periods.

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