Australia: S&P/ASX 200 (.AXJO) futures pointing lower

Australia: S&P/ASX 200 (.AXJO) futures pointing lower

Australia: S&P/ASX 200 (.AXJO) futures pointing lower

According to the latest SPI futures, the ASX 200 is expected to open the day lower on Tuesday. Current futures contracts are pointing to a decline of 0.5% or 30 points this morning following a disappointing night of trade on Wall Street. Late in the session the Dow Jones is down 1.1%, the S&P 500 has fallen 1%, and the Nasdaq is down 1.3%.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 5,829.59.

The projected upper bound is: 6,062.22.

The projected lower bound is: 5,751.84.

The projected closing price is: 5,907.03.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 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 49.4697. This is not an overbought or oversold reading. The last signal was a sell 3 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 65.26. 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 buy 60 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 105.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 3 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 19 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 39.900 at 5,905.600. Volume was 9% above average (neutral) and Bollinger Bands were 18% wider than normal.

Open High Low Close Volume___
5,865.7005,915.2005,864.0005,905.600 658,250,496

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

Moving Averages: 10-period 50-period 200-period
Close: 5,851.71 5,699.56 6,004.87
Volatility: 7 17 14
Volume: 475,010,880 592,854,720 583,887,744

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 1.7% below 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 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 14 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

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