Australia: S&P/ASX 200 (.AXJO) investors remain cautious ahead of key trade talks later this week

Australia: S&P/ASX 200 (.AXJO) investors remain cautious ahead of key trade talks later this week

Australia: S&P/ASX 200 (.AXJO) investors remain cautious ahead of key trade talks later this week

The Australian sharemarket closed slightly lower on Tuesday, as investors remained cautious ahead of key trade talks later this week, shifting capital into more defensive assets.

The S&P/ASX 200 Index slid 7.4 points, or 0.1 per cent, to 6658 while the broader All Ordinaries lost 11 points, or 0.2 per cent, to end the session at 6734.5.

The local sharemarket followed the lead of global markets, which traded cautiously on Monday ahead of Presidents Trump and Xi meeting at the G20 Summit in Japan on Friday, where the two are expected to discuss the ongoing US-China trade war.

“There could be some resolution which could change markets over the next 12 months but it could be sooner,” said Shayne Heffernan, CEO and Founder of Heffx.

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 6,408.94.

The projected upper bound is: 6,786.86.

The projected lower bound is: 6,546.52.

The projected closing price is: 6,666.69.


A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white candles.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 77.6215. This is not an overbought or oversold reading. The last signal was a sell 0 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 68.12. 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 2 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 98. This is not a topping or bottoming area. The last signal was a sell 1 period(s) ago.


The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 9 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed down -7.400 at 6,658.000. Volume was 2% above average (neutral) and Bollinger Bands were 83% wider than normal.

Open High Low Close Volume___
6,665.4006,680.3006,647.3006,658.000 660,611,584

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

Moving Averages: 10-period     50-period     200-period
Close: 6,605.07 6,406.45 6,061.90
Volatility: 9 12 14
Volume: 745,368,512 625,399,296 624,172,736

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.


S&P/ASX 200 is currently 9.8% above its 200-period moving average and is in an upward trend. Volatility is high 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 10 periods.

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