Australia: S&P/ASX 200 (.AXJO) failed to make strong gains after the US and China agreed to resume trade talks

Australia: S&P/ASX 200 (.AXJO) failed to make strong gains after the US and China agreed to resume trade talks

Australia: S&P/ASX 200 (.AXJO) failed to make strong gains after the US and China agreed to resume trade talks

The Australian share market has closed higher but failed to make strong gains after the US and China agreed to resume trade talks over the weekend.

The benchmark S&P/ASX200 index was up 29.3 points, or 0.44 per cent, to 6,648.1 points at 1615 AEST on Monday, while the broader All Ordinaries was up 32.3 points, or 0.48 cent, to 6,731.4.

The gains were “nowhere near as much as I’d expect, given what happened with Trump and Xi,” said X-Chainge director Nick Twidale, referring to Donald Trump and Chinese leader Xi Jinping agreeing at the G20 summit in Japan to restart trade talks.

“It’s been a bit of an anti-climax off the meeting,” Mr Twidale said.

“I’ve been very surprised at how muted the reaction’s been.”

Tech shares were the biggest gainer, closing up 2.4 per cent, with Computershare up 3.6 per cent to $16.79, Link Admin Holdings up 5.2 per cent to $5.26 and Citadel Group up 9.4 per cent to $5.03.

Afterpay Touch and its competitors were the outliers, all lower following Visa’s announcement late last week it was entering the buy-now, pay-later space

Afterpay was down 2.7 per cent to $24.40, while Zip Co was down 6.3 per cent, Splitit down 6.4 per cent and Flexigroup down 2.5 per cent.

Property shares and energy were the only other sectors to gain more than a percentage point, with property trusts up 1.2 per cent and energy up one per cent amid indications the Organisation of the Petroleum Exporting Countries (OPEC) and its allies would extend an agreement on supply cuts for another six to nine months.

Santos was up 1.6 per cent to $7.19, Woodside Petroleum gained 0.6 per cent to $36.56 and Oil Search gained 1.3 per cent to $7.15, while in property Goodman Group gained 1.3 per cent to $15.22 and Scentre Group was up one per cent to $3.88.

Consumer stocks were the only sectors in negative territory, with consumer discretionary stocks dipping 0.4 per cent and consumer staples down 0.3 per cent.

Woolworths was down 0.6 per cent, Coles down 0.9 per cent and Aristocrat Leisure down 2.9 per cent.

Mining shares were up half a per cent after the price of iron ore hit a five-year high, with BHP up 1.3 per cent to $41.68, Rio Tinto gaining one per cent to $104.75 and Fortescue Metals up 1.5 per cent to $9.15.

Gold miners were lower after the price of the precious metal fell under $US1,400 after rising above it for the first time since 2013 last week.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 6,431.97.

The projected upper bound is: 6,776.48.

The projected lower bound is: 6,534.55.

The projected closing price is: 6,655.51.

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 28 white candles and 22 black candles for a net of 6 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 49.0138. 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 62.92. 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 6 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 45. This is not a topping or bottoming area. The last signal was a sell 5 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 sell 0 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 29.300 at 6,648.100. Volume was 14% below average (neutral) and Bollinger Bands were 82% wider than normal.

Open High Low Close Volume___
6,618.8006,664.0006,618.8006,648.100 555,610,752

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

Moving Averages: 10-period     50-period     200-period
Close: 6,645.34 6,438.35 6,071.57
Volatility: 11 12 14
Volume: 772,186,496 639,630,592 627,239,232

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 9.5% 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 14 periods.

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