Home Stocks Australia Australia: S&P/ASX 200 (.AXJO) expected to edge lower

Australia: S&P/ASX 200 (.AXJO) expected to edge lower

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Australia: S&P/ASX 200 (.AXJO) expected to edge lower

The Australian share market looks set to finish the week on a subdued note despite a strong night of trade over in the United States. According to the latest SPI futures, the ASX 200 index is poised to open 0.1% or 5 points lower on Friday. On Wall Street the Dow Jones stormed 0.95% higher, the S&P 500 climbed 0.95%, and the Nasdaq pushed 0.8% higher.

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 6,376.58.

The projected upper bound is: 6,816.69.

The projected lower bound is: 6,578.36.

The projected closing price is: 6,697.52.

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 31 white candles and 19 black candles for a net of 12 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 94.9386. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 3 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 73.69. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 19 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 128.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 3 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 6 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 39.300 at 6,687.400. Volume was 57% above average (neutral) and Bollinger Bands were 55% wider than normal.

Open High Low Close Volume___
6,648.1006,687.4006,638.8006,687.4001,003,978,560

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

Moving Averages: 10-period 50-period 200-period
Close: 6,544.97 6,380.30 6,055.45
Volatility: 11 12 14
Volume: 702,666,048 607,630,080 621,212,928

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 10.4% above its 200-period moving average and is in an upward 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 bullish on .AXJO and have had this outlook for the last 7 periods. Our momentum oscillator is currently indicating that .AXJO is currently in an overbought condition.

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