Australia: S&P/ASX 200 (.AXJO) down driven by large falls in utility, communications, energy and healthcare stocks

Australia: S&P/ASX 200 (.AXJO) down driven by large falls in utility, communications, energy and healthcare stocks

Australia: S&P/ASX 200 (.AXJO) down driven by large falls in utility, communications, energy and healthcare stocks

Third day of losses driven by large falls in utility, communications, energy and healthcare stocks, Australian shares declined for a third consecutive session on Thursday, ignoring a strong lead from Wall Street sparked by renewed optimism over the prospects of a near-term trade deal being reached by the United States and China.

The S&P/ASX 200 finished with a loss of 32.6 points, or 0.5 per cent, closing at a one-week low of 6677.6. The index has now fallen 1.5 per cent from highs hit last week with the current losing streak the longest since the start of September.

Aside from a flat close for industrials, every sector finished in the red, deep in some instances. Communications skidded 1.7 per cent while utilities shed 1.5 per cent. Healthcare and energy also slipped 1 per cent.

Materials dropped 0.7 percent, REITs 0.5 per cent and information technology 0.4 per cent. Financials, consumer staples and consumer discretionary were the relative out-performers, finishing with falls of 0.1, 0.2 and 0.3 per cent respectively.

Technical Indicators

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 6,610.90.

The projected upper bound is: 6,837.85.

The projected lower bound is: 6,518.49.

The projected closing price is: 6,678.17.

Candlesticks

A black body occurred (because prices closed lower 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 30 white candles and 20 black candles for a net of 10 white candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 37.5288. This is not an overbought or oversold reading. 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 53.66. 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 58 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 2. This is not a topping or bottoming area. The last signal was a sell 1 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 21 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed down -32.600 at 6,677.600. Volume was 11% below average (neutral) and Bollinger Bands were 31% narrower than normal.

Open     High      Low     Close     Volume___
6,710.2006,720.8006,667.1006,677.600 594,823,616
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 6,705.43 6,630.47 6,304.31
Volatility: 7 15 13
Volume: 752,472,960 689,802,560 639,234,496

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 5.9% above its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into .AXJO (mildly bullish). Our trend forecasting oscillators are currently bullish on .AXJO and have had this outlook for the last 14 periods.

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