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

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

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

The Australian share market opened lower following mixed leads from Wall Street and is now tracking 0.6 per cent lower at noon. Woolworths (ASX:WOW) shares saw a rise throughout the morning as they reported saw food sales improve in its third quarter by 4.2 per cent. AMP (ASX:AMP) shares have taken a dip after reporting expected weakness in inflows and higher outflows post-Royal Commission. This and banks dragged the financial sector down.

Also ANZ’s (ASX:ANZ) weaker than expected result and NAB (ASX:NAB) slashing its dividend. Westpac (ASX:WBC) is down over 1 per cent. Healthcare was the best performer of the day. The S&P/ASX 200 index is 40 points lower at 6336. On the futures market the SPI is 37 points lower.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 6,147.24.

The projected upper bound is: 6,439.62.

The projected lower bound is: 6,247.12.

The projected closing price is: 6,343.37.

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 32 white candles and 18 black candles for a net of 14 white candles.

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 53.2514. This is not an overbought or oversold reading. 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 59.35. 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 3 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 62. This is not a topping or bottoming area. The last signal was a sell 2 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 9 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed down -37.500 at 6,338.400. Volume was 9% above average (neutral) and Bollinger Bands were 10% narrower than normal.

Open High Low Close Volume___
6,375.9006,375.9006,323.5006,338.400 670,586,112

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

Moving Averages: 10-period 50-period 200-period
Close: 6,328.00 6,215.94 6,031.64
Volatility: 11 10 14
Volume: 574,552,256 641,699,904 611,149,056

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 5.1% above its 200-period moving average and is in an upward trend. Volatility is 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 10 periods.

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