Australia: S&P/ASX 200 (.AXJO) expected to edge higher
On Thursday the S&P/ASX 200 index gave back the majority of its early gains but still finished the day higher. The benchmark index rose 0.2% to 7,103.2 points.
Will the local share market be able to build on this on Friday? Here are five things to watch:
ASX 200 expected to edge higher.
The S&P/ASX 200 index looks set to end the week on a positive note. According to the latest SPI futures, the ASX 200 is poised to rise 10 points or 0.15% at the open. This is despite it being a disappointing night of trade on Wall Street. In late trade the Dow Jones is down 0.3% and the S&P 500 and Nasdaq indices are trading slightly lower.
Oil prices higher.
Energy producers including Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could be on the rise on Friday after oil prices continued their recovery. According to Bloomberg, the WTI crude oil price is up 0.9% to US$51.61 a barrel and the Brent crude oil price has risen 1.3% to US$56.52 a barrel. Traders are optimistic that OPEC will make deeper than planned production cuts due to recent price weakness.
Gold price rises.
Gold miners such as Newcrest Mining Limited (ASX: NCM) and St Barbara Ltd (ASX: SBM) could be moving higher today after the gold price pushed higher. According to CNBC, the spot gold price rose 0.45% to US$1,578.80 an ounce after coronavirus concerns continued to escalate.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 7,264.96.
The projected lower bound is: 6,951.73.
The projected closing price is: 7,108.34.
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 31 white candles and 19 black candles for a net of 12 white candles.
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
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 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 83.3252. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 2 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 62.18. 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 14 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 168.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 6 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 0 period(s) ago.
Rex Takasugi – TD Profile
S&P/ASX 200 closed up 15.000 at 7,103.200. Volume was 30% above average (neutral) and Bollinger Bands were 27% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 7,019.63 6,891.16 6,679.17
Volatility: 12 15 14
Volume: 659,398,144 556,171,392 616,429,632
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 6.3% 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 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 24 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.
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