Australia: S&P/ASX 200 (.AXJO) falls 1.5 per cent
Fears of a recession in the United States and lower expectations of global trade pushed the Australian share market down by more than 100 points to close 1.5 per cent lower at 6639.9 points on Wednesday.
The index opened at 6742.8 and ended the day with 180 companies in red. Financials and utilities slumped 1.8 per cent while consumer staples, industrials, consumer discretionary, healthcare and materials fell in excess of 1.4 per cent. Energy and telecommunications had a 1 per cent fall. The real estate investment trust sector had the best day, closing 0.3 per cent lower after getting into positive terriroty around 3pm.
Commonwealth Bank closed more than 2 per cent lower at $79.60, the lowest price since September 9. And National Australia Bank lost 2.3 per cent to close at $29.02 after suprising the market with a $1.2 billion remediation provision. Westpac fell 1.6 per cent to $29.21 and ANZ Bank fell 1.5 per cent to $28.05.
The material sector suffered on expectations of lower global growth and weaker manufacturing data out of the United States. BHP fell 1.9 per cent to $36.30, Rio Tinto fell 1.6 per cent to $91.09, and South32 dropped 3.77 per cent to $2.55. While gold miners spent much of the day in green, only one company, Northern Star, ended the day higher. Gold fell by 0.5 per cent during the day, from $US1485.1 per ounce down to $US1475.61.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 6,615.49.
The projected upper bound is: 6,801.79.
The projected lower bound is: 6,472.53.
The projected closing price is: 6,637.16.
A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white candles.
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 34.3239. This is not an overbought or oversold reading. The last signal was a sell 8 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 47.58. 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 62 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 -86. This is not a topping or bottoming area. The last signal was a sell 5 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 sell 2 period(s) ago.
Rex Takasugi – TD Profile
S&P/ASX 200 closed down -102.900 at 6,639.900. Volume was 8% below average (neutral) and Bollinger Bands were 48% 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: 6,712.18 6,628.36 6,325.78
Volatility: 13 16 13
Volume: 704,517,760 693,071,744 637,561,472
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 5.0% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 18 periods.
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