Australia: S&P/ASX 200 (.AXJO) hopes that the RBA would cut interest rates even lower boosted shares

Australia: S&P/ASX 200 (.AXJO) hopes that the RBA would cut interest rates even lower boosted shares

Australia: S&P/ASX 200 (.AXJO) hopes that the RBA would cut interest rates even lower boosted shares

The local market finished Tuesday’s session at a 12-year closing high, buoyed by comments out of the Reserve Bank which seemed to confirm further cuts to the official cash rate were ahead.

At the close of trade, the ASX benchmark S&P/ASX200 had gained 39.087 points, or 0.6 per cent to 6570 points, its highest close since December 2007. The broader All Ordinaries index had risen 38.453 points, or 0.58 per cent, to 6647.898 points.

After a positive start to the session, the ASX 200 jumped on the release of RBA board meeting minutes for the month of June, which seemed to confirm that more policy easing was coming.

The Australian dollar was trading firmly lower at US68.38c in late trade.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 6,695.79.

The projected lower bound is: 6,455.61.

The projected closing price is: 6,575.70.

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 73.7746. This is not an overbought or oversold reading. The last signal was a sell 1 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 66.08. 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 17 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 90. This is not a topping or bottoming area. The last signal was a sell 1 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 39.100 at 6,570.000. Volume was 36% above average (neutral) and Bollinger Bands were 21% wider than normal.

Open High Low Close Volume___
6,530.9006,572.5006,529.3006,570.000 859,935,360

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

Moving Averages: 10-period 50-period 200-period
Close: 6,480.51 6,361.87 6,051.93
Volatility: 10 12 14
Volume: 664,800,832 595,427,712 618,610,816

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 8.6% 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 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. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

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