Australia: S&P/ASX 200 (.AXJO) holds above 6,000

Australia: S&P/ASX 200 (.AXJO) holds above 6,000

Australia: S&P/ASX 200 (.AXJO) holds above 6,000

The Australian share market popped higher at the open after all US indices gained ahead of Trump’s State of Union address, with the Nasdaq and Dow Jones up the most, about 0.7 per cent.

The local bourse quickly sank into the red and quickly recovered, with Tech and Industrial stocks leading the charge

Capping gains today is selling in the Financial sector, which seeing some profit taking today, after the sector had its biggest gain in 10 years, rising 4.5 per cent yesterday, which helped the broader ASX hit four-month highs. And in case you missed it yesterday, the RBA kept rates on hold for the 27th time yesterday, as expected.

The S&P/ASX 200 index is 0.3 per cent or 18 points higher at 6,024. On the futures market the SPI is 17 points higher.

Reporting Season

CBA (ASX:CBA) reported its first half 2019 results with a 2 per cent EPS miss according to UBS, while its cash earnings results were 1 per cent ahead of Citi’s expectations. Its cash net profit after tax came in at $4.7 billion, less than $4.8 billion expected by consensus. Citi has a price target of $72.00 for the firm. CBA shares are trading 1.9 per cent lower at $72.23 at noon. 

Insurance Australia Group (ASX:IAG) reported a 9 per cent fall in its net profit attributable to shareholders, with a $500 million headline result for the half year to 31 December 2018. Its net earned premium sank 13 per cent to $3.6 billion over the same period, compared to the same period last year. Shares in Insurance Australia Group (ASX:IAG) are trading 4.5 per cent higher at $7.63 at noon.

Virgin Australia Holdings (ASX:VAH) announced its appointed Paul Scurrah as Chief Executive Officer and Managing Director of the group. Paul has been in transport, logistics, travel and aviation roles for over 20 years. He was most recently in CEO roles at DP World Australia, Queensland Rail, as well as Executive General Management roles at Aurizon (ASX:AZJ), Flight Centre (ASX:FLT) and Tourism Queensland. VAH shares are trading 4.1 per cent higher at $0.19 at noon.

Overall, the bias in prices is: Upwards.

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

By the way, prices are vulnerable to a correction towards 5,847.82.

The projected upper bound is: 6,187.11.

The projected lower bound is: 5,878.48.

The projected closing price is: 6,032.80.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 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 84.1153. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 10 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 71.63. 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 buy 67 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 269.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 6 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 1 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 20.200 at 6,026.100. Volume was 4% below average (neutral) and Bollinger Bands were 25% narrower than normal.

Open High Low Close Volume___
6,005.9006,042.5005,990.5006,026.100 581,714,944

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

Moving Averages: 10-period 50-period 200-period
Close: 5,902.66 5,729.82 6,006.42
Volatility: 13 17 14
Volume: 670,170,752 603,741,760 590,837,888

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 0.3% above its 200-period moving average and is in an upward trend. Volatility is low 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 21 periods. Our momentum oscillator is currently indicating that .AXJO is currently in an overbought condition.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

You must be logged in to post comments :  
CONNECT WITH