Australia: S&P/ASX 200 (.AXJO) close to historical highs

Australia: S&P/ASX 200 (.AXJO) close to historical highs

Australia: S&P/ASX 200 (.AXJO) close to historical highs

The S&P/ASX 200 had its best one-day rally since May, up 1.6 per cent today to 6849.7 points and did get as high at 6866 just before the close. 

This falls short of historical highs. The S&P/ASX 200’s highest closing price was 6864 points on November 28, and the highest intra-day price was 6893.7 reached on November 29. 

Today’s rally saw 167 companies close higher and just 29 were in red. The falls include massive losses for Perenti Global and SmartGroup, which dropped 18.9 per cent and 15.2 per cent respectively after issuing profit warnings. 

The gains were across the board and Australia’s market made significant gains out of step with regional neighbours like the Hang Seng, Nikkei, and Shanghai Composite, which were all lower. 

The biggest mover was CSL, which added nearly 12 points with a 2.5 per cent gain to close at $285.10, just one dollar short of its all-time high. And Commonwealth Bank gained 1.7 per cent to $81.46, the highest price for two weeks. Meanwhile BHP reached a four-and-a-half-month high of $39.99, a gain of 1.6 per cent. 

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 7,004.02.

The projected lower bound is: 6,706.82.

The projected closing price is: 6,855.42.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
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 33 white candles and 17 black candles for a net of 16 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 74.3056. This is not an overbought or oversold reading. The last signal was a buy 6 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 58.65. 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 115 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 63. This is not a topping or bottoming area. The last signal was a buy 6 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 0 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 110.000 at 6,849.700. Volume was 2% above average (neutral) and Bollinger Bands were 0% narrower than normal.

Open     High      Low     Close     Volume___
6,741.6006,866.1006,741.6006,849.700 650,903,680
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 6,719.65 6,713.40 6,541.89
Volatility: 22 14 14
Volume: 607,499,264 591,736,832 630,523,136

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 4.7% 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 8 periods.

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