Australia: S&P/ASX 200 (.AXJO) enjoying a strong start to the year

Australia: S&P/ASX 200 (.AXJO) enjoying a strong start to the year

Australia: S&P/ASX 200 (.AXJO) enjoying a strong start to the year

“It’s been a reasonable start to the year,” said Atlas Funds Management chief investment officer Hugh Dive. “We’re still in that quiet period [before earnings season] where macro factors will have a big impact. We were down a bit earlier today but there’s a big impact of BHP going ex-[dividend] so it was pretty flat actually.”

The major banks rallied from a fall in the middle of the day to close the session slightly higher. Commonwealth Bank rose 0.2 per cent to $72.45, Westpac climbed 0.4 per cent to $25.85, ANZ advanced 0.6 per cent to $25.33 and NAB closed 0.1 per cent higher at $24.60.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 5,961.53.

The projected lower bound is: 5,631.75.

The projected closing price is: 5,796.64.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 97.7211. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 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 60.37. 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 49 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 149.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. 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 buy 8 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 17.000 at 5,795.300. Volume was 14% below average (neutral) and Bollinger Bands were 4% wider than normal.

Open High Low Close Volume___
5,778.3005,795.3005,755.4005,795.300 528,258,400

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 5,668.77 5,704.55 6,002.30
Volatility: 18 18 14
Volume: 443,967,936 621,343,104 586,098,560

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 3.4% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 3 periods.

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