Australia: S&P/ASX 200 (.AXJO) best performance in four months

Australia: S&P/ASX 200 (.AXJO) best performance in four months

Australia: S&P/ASX 200 (.AXJO) best performance in four months

Australian shares recorded their best performance in four months on Wednesday as they extended their gains from the previous session.

The S&P/ASX 200 Index closed 69.2 points, or 1.2 per cent, higher at 5939.1, following on from a strong session on Wall Street on Tuesday.

Australian blue chip stocks followed the strong gains in the US, led by CSL which rose 2.5 per cent to $193.00 after it reaffirmed its profit guidance for 2019.

Overall, the bias in prices is: Downwards.

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

By the way, prices are vulnerable to a correction towards 6,096.90.

The projected upper bound is: 6,055.03.

The projected lower bound is: 5,810.00.

The projected closing price is: 5,932.51.

Candlesticks

A white body occurred (because prices closed higher 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 23 white candles and 27 black candles for a net of 4 black 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 31.4220. This is not an overbought or oversold reading. The last signal was a buy 0 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 36.33. This is not a topping or bottoming area. However, the RSI just crossed above 30 from a bottoming formation. This is a bullish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 0 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 -77. 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 7 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 69.200 at 5,939.100. Volume was 1% below average (neutral) and Bollinger Bands were 154% wider than normal.

Open High Low Close Volume___
5,869.9005,940.2005,869.9005,939.100 576,116,608

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

Moving Averages: 10-period 50-period 200-period
Close: 5,997.86 6,186.32 6,076.59
Volatility: 21 13 12
Volume: 619,833,472 607,206,592 571,160,192

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 2.3% below 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 29 periods.

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