Australia: S&P/ASX 200 (.AXJO) hits new all-time high

Australia: S&P/ASX 200 (.AXJO) hits new all-time high

Australia: S&P/ASX 200 (.AXJO) hits new all-time high

The Australian share market’s benchmark index has hit an all-time high after the S&P/ASX200 broke through the record mark last reached more than 11 years ago.

The index surged past its November 1, 2007 high of 6,851.5 points at 1009 AEST on Tuesday and peaked 20 minutes later at a new record of 6,874.7 points, before briefly slipping back below the pre-global financial crisis milestone.

The ASX200 was introduced in March 2000 with a value of 3,133.3 points as an index of the 200 largest companies on the Australian Securities Exchange.

The wider Australian share market lost 54 per cent in the 16 months after its peak in November 2007 amid the GFC as the ASX200 bottomed out in February 2009.

AMP Capital economist Shane Oliver said the fact that the Reserve Bank of Australia was relatively tepid in cutting interest rates after the GFC was one of the reasons it had taken the ASX longer to recover compared to share markets in many other countries.

The ASX200 has gained more than 23 per cent so far in 2019 and was trading at 6,854.7 points at 1345 AEST on Tuesday.

The broader All Ordinaries index – which is made up of the 500 largest companies on the ASX – broke records of its own last week, finishing on Wednesday at a record high and surpassing its intra-day high on Thursday.

The All Ordinaries was set up in 1980 with a value of 500 points.

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

The projected upper bound is: 6,962.42.

The projected lower bound is: 6,742.54.

The projected closing price is: 6,852.48.

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 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 85.5880. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 16 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 68.75. 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 16 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 144.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 16 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 3 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 19.300 at 6,845.100. Volume was 2% below average (neutral) and Bollinger Bands were 1% narrower than normal.

Open     High      Low     Close     Volume___
6,825.8006,875.5006,825.8006,845.100 601,532,800
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 6,749.75 6,603.46 6,131.62
Volatility: 8 11 14
Volume: 582,029,632 639,603,072 624,543,488

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 11.6% 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 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 35 periods.

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