Home Stocks Australia Australia: S&P/ASX 200 (.AXJO) flirting with confirming bullish break out pattern

Australia: S&P/ASX 200 (.AXJO) flirting with confirming bullish break out pattern


Australia: S&P/ASX 200 (.AXJO) flirting with confirming bullish break out pattern

Positioning in Australia’s benchmark ASX 200 stock index is similarly eye-catching. Prices are hovering within a hair of what could be the top a Symmetrical Triangle pattern. If confirmed on a daily close above the 6775.60, the setup would carry bullish continuation implications.

Initial resistance thereafter is at 6875.50, the July 30 high, though the measured upward move implied by the Triangle’s bounds would be expected to bring the index substantially higher. Support begins in the 6604.20-34-70 area but clearing the 6500 figure is probably needed to invalidate bullish cues in earnest.

Technical Indicators

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 6,628.92.

The projected upper bound is: 6,828.02.

The projected lower bound is: 6,575.22.

The projected closing price is: 6,701.62.


A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 34 white candles and 16 black candles for a net of 18 white candles.

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 40.3793. 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 53.74. 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 86 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 26. This is not a topping or bottoming area. The last signal was a sell 4 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 up 10.200 at 6,697.100. Volume was 24% below average (neutral) and Bollinger Bands were 27% narrower than normal.

Open     High      Low     Close     Volume___
6,686.9006,725.9006,678.9006,697.100 481,993,088
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 6,699.80 6,650.62 6,440.26
Volatility: 7 12 13
Volume: 560,043,392 632,996,928 641,379,328

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 4.0% above its 200-period moving average and is in an upward 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 bullish on .AXJO and have had this outlook for the last 6 periods.

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