Australia: S&P/ASX 200 (.AXJO) investors respond to climbing prospects of easier monetary policy at home and abroad
The ASX is expected to move back within striking distance of a post-GFC high in coming days as investors respond to climbing prospects of easier monetary policy at home and abroad.
Thursday’s jobs data for May stands out as the key imminent data release as economists and investors try to divine when the Reserve Bank of Australia will cut again, with markets coalescing around an August move in the cash rate to 1 per cent.
The Australian stock exchange was closed on Monday for a public holiday. Wall Street futures, however, pointed to further gains in US stocks that night, bolstering bets for a 0.5 per cent lift in the S&P/ASX 200 sharemarket index come Tuesday’s open.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 6,564.42.
The projected lower bound is: 6,335.91.
The projected closing price is: 6,450.17.
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 32 white candles and 18 black candles for a net of 14 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 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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 70.1145. 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 58.03. 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 11 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 -2. This is not a topping or bottoming area. The last signal was a buy 2 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 sell 6 period(s) ago.
Rex Takasugi – TD Profile
S&P/ASX 200 closed up 60.900 at 6,443.900. Volume was 6% below average (neutral) and Bollinger Bands were 25% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 6,400.40 6,320.87 6,044.34
Volatility: 12 11 14
Volume: 646,723,904 593,074,944 620,341,888
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.
S&P/ASX 200 is currently 6.6% above its 200-period moving average and is in an downward 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 bearish on .AXJO and have had this outlook for the last 2 periods.
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