Australia: S&P/ASX 200 (.AXJO) higher despite stocks of media companies and retailers taking a hit

Australia: S&P/ASX 200 (.AXJO) higher despite stocks of media companies and retailers taking a hit

Australia: S&P/ASX 200 (.AXJO) higher despite stocks of media companies and retailers taking a hit

The Australian share market has finished a touch higher despite stocks of media companies and retailers taking a hit amid reports their businesses are suffering.

The benchmark S&P/ASX200 index finished Tuesday up 9.4 points, or 0.14 per cent, to 6,652 points, while the broader All Ordinaries was up 5.4 points, or 0.08 per cent, to 6,763.3 points.

“A pretty strong session locally, considering a relatively weak lead from Wall Street,” said CommSec market analyst James Tao.

US indices were down 0.1 per cent after the Chinese delegation threw cold water on Donald Trump’s enthusiastic descriptions of his vague deal with Beijing on trade.

Energy, mining and consumer discretionary shares were all lower while health care, industrials and utility stocks led gainers.

CSL rose 1.9 per cent to hit a new all-time high of $248.39 and accounted for two-thirds of the index’s gains.

Media stocks were under pressure after Triple M owner Southern Cross Media said that media markets had been weak during the first quarter, with revenue down eight per cent, and forecast that first-half earnings would be down 24 per cent.

Southern Cross shares plunged 18.6 per cent; Nine Entertainment was down 6.4 per cent; Ooh!Media dropped 3.1 per cent; radio station owner Here, There & Everywhere (formerly APN News & Media) fell 6.5 per cent and Seven West Media dropped 3.9 per cent.

Many retailers were also feeling the heat after furniture seller Nick Scali reported a dive in sales at its furniture outlets, with like-for-like sales down 8.0 per cent year-to-date and foot traffic down 10 to 15 per cent over the last three months.

Nick Scali shares plunged 13.8 per cent, Harvey Norman fell 5.9 per cent, JB Hi-Fi dropped 4.5 per cent, Adairs dropped 4.6 per cent, Super Retail Group dropped 3.0 per cent and Breville Group dropped 2.3 per cent.

Mining stocks were lower as commodity prices fell, with BHP down 1.2 per cent to $36.08, Rio Tinto down 1.4 per cent to $90.60 and Fortscue Metals down 3.5 per cent to $8.64.

Goldminers were mixed, with Newcrest down 0.7 per cent and Silver Lake Resource down 4.3 per cent but Northern Star up 1.1 per cent and St Barbara gaining 1.1 per cent.

All the big banks were higher, with ANZ up 0.6 per cent to $27.83, Commonwealth up 0.3 per cent to $79.31, Westpac up 0.1 per cent to $28.94 and NAB up 0.3 per cent to $28.45.

In the buy now, pay later sector, Splitit spiked 22.7 per cent to 86.5 cents and Sezzle climbed 8.4 per cent to $2.70, although Afterpay was more restrained with a 1.3 per cent rise, to $36.56.

Telstra gained 0.9 per cent to $3.54 after 95.1 per cent of shareholders at the company’s annual general meeting accepted the telecommunication giant’s renumeration report, avoiding a second strike and possible board spill.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 6,810.86.

The projected lower bound is: 6,500.09.

The projected closing price is: 6,655.48.

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 33 white candles and 17 black candles for a net of 16 white candles.

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 83.9725. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 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 52.90. 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 71 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 buy 5 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 0 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 9.400 at 6,652.000. Volume was 23% below average (neutral) and Bollinger Bands were 1% wider than normal.

Open     High      Low     Close     Volume___
6,642.6006,657.4006,621.9006,652.000 504,847,552
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 6,580.22 6,596.19 6,370.63
Volatility: 19 15 13
Volume: 511,906,816 664,955,840 630,950,080

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 4.4% above its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. 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 6 periods.

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