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

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

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

Australian shares closed higher for a second straight session on Tuesday, hitting a more than month long high as trade talks between the US and China continued.

The S&P/ASX 200 Index rose 39.2 points, or 0.7 per cent to 5722.4, while the broader All Ordinaries rose 38.8 points, or 0.7 per cent, to 5783.3.

Australian shares opened Tuesday’s trade lower on the back of some minor losses from the major banks, but rallied following a positive start to trading in Asian markets.

“We’re having a little rally because the US and China are in trade talks,” said Clime Investment Management senior analyst David Walker. “There’s a consensus view both sides need and want a deal.”

The major miners were among the market leaders on Tuesday despite only muted gains. BHP Group rose 0.1 per cent to $34.43, Rio Tinto climbed 0.5 per cent to $79.30, South32 advanced 0.6 per cent to $3.39 and Fortescue Metals Group closed 2 per cent higher at $4.53.

The major banks were mixed as Commonwealth Bank closed the session 0.1 per cent lower at $72.47. The three other majors all closed higher. Westpac rose 1.2 per cent to $25.52, ANZ lifted 1.1 per cent to $24.86 and NAB advanced 0.9 per cent to $24.44.

The energy sector was also largely mixed on Tuesday despite the price of crude oil entering its seventh consecutive positive session. New Hope Corp rose 4.4 per cent to $3.54, Origin Energy climbed 2.2 per cent to $6.86, Beach Energy edged 0.7 per cent higher to $1.45 and WorleyParsons advanced 4.6 per cent to $12.78. Santos shares fell 1 per cent to $5.73 and Oil Search slid 1 per cent to $7.33.

Bingo Industries shares rose after the company updated the market on its proposed acquisition of rival Dial-a-Dump. The company said it had an offered an undertaking to the Australian Competition and Consumer Commission (ACCC) to divest its Banksmeadow waste procession facility. The ACCC said it was considering whether the proposal would adequately address the regulator’s competition concerns around the acquisition. Bingo shares rose 5.7 per cent to $1.95.

Magellan Financial Group climbed 4 per cent to $24.48 despite the company’s funds under management falling by $2 billion between November 30 and December 31 of last year. The company did however report the average funds under management for the second half of 2018 was $72.1 billion, well above the $53.6 billion from the final six months of 2017.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 5,888.77.

The projected lower bound is: 5,558.36.

The projected closing price is: 5,723.57.

Candlesticks

A white body occurred (because prices closed higher 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 27 white candles and 23 black candles for a net of 4 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 74.6208. This is not an overbought or oversold reading. The last signal was a sell 4 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 55.80. 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 47 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 139.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 4 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 39.200 at 5,722.400. Volume was 11% below average (neutral) and Bollinger Bands were 16% narrower than normal.

Open High Low Close Volume___
5,683.2005,733.7005,666.6005,722.400 548,869,568

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

Moving Averages: 10-period 50-period 200-period
Close: 5,607.55 5,700.95 6,002.55
Volatility: 19 19 14
Volume: 498,676,896 627,711,232 586,278,400

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 4.7% below 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 1 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

You must be logged in to post comments :  
CONNECT WITH