Australia: S&P/ASX 200 (.AXJO) investors focus on RBA governor Philip Lowe speech

Australia: S&P/ASX 200 (.AXJO) investors focus on RBA governor Philip Lowe speech

Australia: S&P/ASX 200 (.AXJO) investors focus on RBA governor Philip Lowe speech

The Australian share market is expected to open higher after a positive lead from Wall Street at the end of last week.

The SPI200 futures contract was up 35.0 points, or 0.52 per cent, at 6,738 at 8am Sydney time, suggesting a bounce for the benchmark S&P/ASX200 on Monday.

On Wall Street on Friday, the Dow Jones Industrial Average finished up 1.22 per cent, the S&P 500 was up 0.91 per cent and the tech-heavy Nasdaq Composite was up 1 per cent.
Australian shares ended last week lower as the local market was weighed down by concerns about a weak domestic economy and escalating trade tensions.

The S&P/ASX 200 index fell 2 per cent to 6707 during the week. It rose 0.36 per cent, or 24 points, on Friday.

The Aussie dollar is buying 68.37 US cents from 68.45 US cents on Friday.

RBA governor Philip Lowe will speak at the AusPayNet Summit in Sydney; Monetary policy meeting in Washington; Chairman Jerome Powell delivers final press conference of the year; Japan delivers third quarter GDP data and October current accounts.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 6,892.15.

The projected lower bound is: 6,569.52.

The projected closing price is: 6,730.83.

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.

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 39.9337. This is not an overbought or oversold reading. The last signal was a buy 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 49.72. 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 110 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 -29. This is not a topping or bottoming area. The last signal was a buy 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 sell 3 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 23.000 at 6,730.000. Volume was 21% below average (neutral) and Bollinger Bands were 7% narrower than normal.

Open     High      Low     Close     Volume___
6,707.0006,740.0006,707.0006,730.000 505,303,840
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 6,764.92 6,697.38 6,527.74
Volatility: 20 15 13
Volume: 627,893,952 584,558,720 633,385,472

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 3.1% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 3 periods.

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