Australia: S&P/ASX 200 (.AXJO) gains as US Fed cuts interest rates

Australia: S&P/ASX 200 (.AXJO) gains as US Fed cuts interest rates

Australia: S&P/ASX 200 (.AXJO) gains as US Fed cuts interest rates

The Australian share market has had its best day in two weeks, with most sectors posting gains after the US Federal Reserve cut a key interest rate.

The benchmark S&P/ASX200 index closed Thursday up 35.9 points, or 0.54 per cent, to 6,717.5 points. The broader All Ordinaries was up 34 points, or 0.5 per cent, to 6,825.2 points.

It was the ninth day of gains in 11 sessions for the ASX200, which has now recovered nearly two-thirds of its losses suffered in five straight days of dismal trading in late July and early August.

Regulatory tech company Kyckr rocketed up 90.5 per cent to 20 cents after WiseTech Global founder and chief executive Richard White bought 19.6 per cent stake in the $19 million company, which helps firms manage their know-your-customer obligations.

The Australian dollar slid to a two-week low, meanwhile, after the release of ABS data showing unemployment edged up 0.1 per cent to 5.3 per cent in August, increasing the chance of another cash rate cut next month.

The Aussie dollar is buying 67.82 US cents, from 68.44 US cents on Wednesday.

In cryptocurrency, Bitcoin dipped under the $US10,000 mark for the first time this month, falling 2.8 per cent on Sydney exchange the Independent Reserve to $US9,937 or $A14,522.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 6,877.75.

The projected lower bound is: 6,557.30.

The projected closing price is: 6,717.53.

Candlesticks

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 29 white candles and 21 black candles for a net of 8 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 80.6014. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 5 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 62.27. 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 53 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 133.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 16 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 35.900 at 6,717.500. Volume was 50% above average (neutral) and Bollinger Bands were 4% narrower than normal.

Open     High      Low     Close     Volume___
6,681.6006,742.9006,681.6006,717.500 997,435,904
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 6,663.94 6,624.39 6,277.59
Volatility: 6 16 14
Volume: 739,225,152 670,341,248 637,261,504

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 7.0% 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 very strong flows of volume into .AXJO (bullish). Our trend forecasting oscillators are currently bullish on .AXJO and have had this outlook for the last 9 periods.

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