Australia: S&P/ASX 200 (.AXJO) falls on financials

Australia: S&P/ASX 200 (.AXJO) falls on financials

Australia: S&P/ASX 200 (.AXJO) falls on financials

The Australian sharemarket posted a modest decline on Tuesday despite an overnight advance in base metals prices helping lift the shares of heavyweight miners.

The S&P/ASX 200 index fell 27.9 points, or 0.4 per cent, to 6258.1, falling on losses made by the big financial stocks.

Macquarie announced late on Monday that it would lift its variable mortgage rates, putting pressure on the big four banks. Macquarie’s shares fell 0.9 per cent to $122.52 during the session.

The major banks also fell, with Commonwealth bank wiping 11 points from the index alone as its shares fell 2.2 per cent to $74.73. ANZ fell 1 per cent to $28.80, Westpac slid 1 per cent to $29.49 and NAB closed at $27.86, down 0.6 per cent.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 6,094.51.

The projected upper bound is: 6,349.18.

The projected lower bound is: 6,178.03.

The projected closing price is: 6,263.61.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 25 white candles and 25 black 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 81.9223. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 10 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 64.40. 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 11 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 152.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 10 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 2 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed down -27.900 at 6,258.100. Volume was 16% below average (neutral) and Bollinger Bands were 14% wider than normal.

Open High Low Close Volume___
6,286.0006,306.1006,257.9006,258.100 479,127,584

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

Moving Averages: 10-period 50-period 200-period
Close: 6,220.92 6,105.82 5,974.33
Volatility: 9 9 10
Volume: 533,135,776 575,752,832 549,406,784

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% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. 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 13 periods.

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