Australia: S&P/ASX 200 (.AXJO) down slightly lower

Australia: S&P/ASX 200 (.AXJO) down slightly lower

Australia: S&P/ASX 200 (.AXJO) down slightly lower

The sharemarket closed slightly lower on Tuesday after minutes from the Reserve Bank’s July meeting dampened the equity market’s expectations of further interest rate cuts.

Investors also continued to weigh the implications of weak growth but positive retail sales from Chinese economic data released on Monday.

The S&P/ASX 200 Index fell 12 points, or 0.2 per cent, to 6641, while the broader All Ordinaries slid 10.4 points, or 0.2 per cent, to 6735.8.

Investors continued to digest a deluge of data for an accurate reading on China’s economy. Annualised GDP growth for the year to June was 6.2 per cent, down from 6.4 per cent in the preceding quarter. This was partly offset by higher-than-expected industrial output and retail sales.

The materials sector finished Tuesday’s session on a neutral footing after a fall from Rio Tinto offset gains posted by the other iron ore majors, BHP Group and Fortescue Metals.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 6,766.83.

The projected lower bound is: 6,529.46.

The projected closing price is: 6,648.15.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 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 24.7172. This is not an overbought or oversold reading. The last signal was a sell 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 52.66. 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 6 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 -71. This is not a topping or bottoming area. The last signal was a sell 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 sell 6 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed down -12.000 at 6,641.000. Volume was 12% below average (neutral) and Bollinger Bands were 51% narrower than normal.

Open High Low Close Volume___
6,653.0006,665.3006,641.0006,641.000 549,367,040

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

Moving Averages: 10-period     50-period     200-period
Close: 6,688.91 6,516.75 6,099.57
Volatility: 10 12 14
Volume: 564,796,992 638,904,512 623,500,096

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 8.9% above its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 bullish on .AXJO and have had this outlook for the last 25 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.

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