Australia: S&P/ASX 200 (.AXJO) finishes flat as gold and oil soar

Australia: S&P/ASX 200 (.AXJO) finishes flat as gold and oil soar

Australia: S&P/ASX 200 (.AXJO) finishes flat as gold and oil soar

The ASX has bounced back from its early losses to close slightly higher, powered by strong gains by gold miners and oil producers as both commodities moved higher amid tension in the Middle East.

The S&P-ASX200 index fell 61.8 points in the first 11 minutes of trading today but moved steadily higher for most of the rest of the day to close up 2.2 points, or 0.03 per cent, at 6735.7.

The all ordinaries also finished up 2.2 points, closing at 6857.4.

Overall the mining sector was the second-biggest gainer, up 0.7 per cent, as sector heavyweight BHP — also an oil producer — gained 0.6 per cent to $39.40. Rio Tinto was down 0.2 per cent to $101.13 while South32 gained 1.9 per cent to $2.72.

The banking sector led losers, falling 0.6 per cent, with all the big four banks lower. Commonwealth and NAB were both down 0.7 per cent, to $79.77 and $24.55, respectively; ANZ fell 0.4 per cent to $24.63, and Westpac dipped 0.1 per cent to $24.34.

Insurance companies Suncorp, QBE and IAG were all down as well, between 1.3 and 1.7 per cent.

Among other blue-chip companies Telstra gained 0.8 per cent, Wesfarmers rose 0.9 per cent, Woolworths was down 0.1 per cent and CSL dipped 0.2 per cent.

Bega Cheese dropped 9.3 per cent to a two-week low of $3.92 after announcing that the NSW bushfires were impacting its employees and dairy farm suppliers.

Pointsbet gained 7.7 per cent to hit $5.33 — its highest level since listing on the ASX in June — after teaming with an American Indian tribe to open an sportsbook in Michigan.

Technical Indicators

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 6,704.84.

The projected upper bound is: 6,886.35.

The projected lower bound is: 6,587.55.

The projected closing price is: 6,736.95.

Candlesticks

A white body occurred (because prices closed higher 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 30 white candles and 20 black candles for a net of 10 white candles.

A hammer occurred (a hammer has a long lower shadow and closes near the high). Hammers must appear after a significant decline or when prices are oversold (which appears to be the case with S&P/ASX 200) to be valid. When this occurs, it usually indicates the formation of a support level and is thus considered a bullish pattern.

A hanging man occurred (a hanging man has a very long lower shadow and a small real body). This pattern can be bullish or bearish, depending on the trend. If it occurs during an uptrend it is called a hanging man line and signifies a reversal top. If it occurs during a downtrend (which appears to be the case with S&P/ASX 200) it is called a bullish hammer.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 32.6259. This is not an overbought or oversold reading. The last signal was a buy 0 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 47.54. 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 127 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 -100.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 1 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 3 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 2.200 at 6,735.700. Volume was 22% below average (neutral) and Bollinger Bands were 9% narrower than normal.

Open     High      Low     Close     Volume___
6,733.1006,738.6006,671.7006,735.700 469,753,312
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 6,769.92 6,748.22 6,577.42
Volatility: 12 14 14
Volume: 437,752,704 567,463,040 616,516,928

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 2.4% above its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of .AXJO at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .AXJO and have had this outlook for the last 2 periods.

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