Australia: S&P/ASX 200 (.AXJO) hit their highest level in 11 years

Australia: S&P/ASX 200 (.AXJO) hit their highest level in 11 years

Australia: S&P/ASX 200 (.AXJO) hit their highest level in 11 years

Shares may have hit their highest level in 11 years but analysts say the rally, which has seen the benchmark S&P/ASX 200 index rocket 16 per cent from its December lows, may have more legs.

The S&P/ASX 200 rose 62.7 points, or 1 per cent, to 6382.1 after earlier touching an intraday high of 6390.5.

The performance came on the back of another stellar day in New York, where the S&P 500 Index and Nasdaq Composite Index closed at record highs of 2933.68 points and 8120.82 points, respectively.

The local market was boosted by some disappointing inflation data that increased the likelihood of a Reserve Bank rate cut.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 6,479.56.

The projected lower bound is: 6,297.49.

The projected closing price is: 6,388.53.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
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 33 white candles and 17 black candles for a net of 16 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 88.6215. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 2 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 70.90. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 31 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 233.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 4 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 62.700 at 6,382.100. Volume was 7% above average (neutral) and Bollinger Bands were 15% narrower than normal.

Open High Low Close Volume___
6,319.4006,390.5006,319.4006,382.100 660,659,712

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

Moving Averages: 10-period 50-period 200-period
Close: 6,264.18 6,187.40 6,028.70
Volatility: 9 9 14
Volume: 535,009,024 651,212,288 608,603,648

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 5.9% above its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 bullish on .AXJO and have had this outlook for the last 5 periods. Our momentum oscillator is currently indicating that .AXJO is currently in an overbought condition.

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