Australia: S&P/ASX 200 (.AXJO) continues to weaken
Australian shares extended their losses from the previous session on Wednesday, as the financial, material and energy stocks wiped $30.3 billion from the ASX board.
The S&P/ASX 200 Index closed 101.4 points, or 1.7 per cent, lower at 5732.8 while the broad All Ordinaries Index fell 100.3 points, or 1.7 per cent, to 5822.3.
The materials sector was also weaker on the back of slightly weaker metal prices. BHP Billiton led the market losses, falling 2.3 per cent to $32.11, Rio Tinto slid 2.6 per cent to $78.44 and South32 ended 2.6 per cent lower at $3.35.
The major banks also sold off led by Commonwealth Bank, which slipped 2.4 per cent to $69.21. Westpac fell 3 per cent to $25.45, NAB slid 2.3 per cent to $23.93 and ANZ closed 2.4 per cent lower at $25.40.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 5,877.31.
The projected lower bound is: 5,568.38.
The projected closing price is: 5,722.85.
A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
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 25 white candles and 25 black candles.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 30.3003. 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 35.71. 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 11 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 -69. This is not a topping or bottoming area. The last signal was a sell 1 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 9 period(s) ago.
Rex Takasugi – TD Profile
S&P/ASX 200 closed down -101.400 at 5,732.800. Volume was 21% above average (neutral) and Bollinger Bands were 39% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 5,863.85 6,003.27 6,054.44
Volatility: 17 17 13
Volume: 587,274,176 607,596,224 584,040,512
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 5.3% 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 49 periods.