Australia: S&P/ASX 200 (.AXJO) investors wait for an important meeting between U.S. President Donald Trump and Chinese leader Xi Jinping

Australia: S&P/ASX 200 (.AXJO) investors wait for an important meeting between U.S. President Donald Trump and Chinese leader Xi Jinping

Australia: S&P/ASX 200 (.AXJO) investors wait for an important meeting between U.S. President Donald Trump and Chinese leader Xi Jinping

Asia markets were mostly higher on Wednesday after a cautious start as investors wait for an important meeting between U.S. President Donald Trump and Chinese leader Xi Jinping later this week.

The mainland Chinese markets ended the day higher by more than 1 percent each. The Shanghai composite rose 1.05 percent to 2,601.73 while the Shenzhen composite advanced 1.399 percent to 1,355.38.

Hong Kong’s Hang Seng index gained 1.22 percent in late-afternoon trade.

Elsewhere in Asia, most markets gained. Japan’s Nikkei 225 was up 1.02 percent at 22,177.02 while the Topix index rose 0.58 percent to 1,653.66, with shares of Fast Retailing advancing 3.59 percent. South Korea’s Kospi gained 0.42 percent to close at 2,108.22.

In Australia, however, the ASX 200 closed fractionally lower at 5,725.1.

Shares of Australia’s major miners were mixed. Rio Tinto fell 2.17 percent and BHP Billiton slipped 0.84 percent while Fortescue Metals Group rose 2.34 percent.

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 5,900.50.

The projected upper bound is: 5,870.02.

The projected lower bound is: 5,561.58.

The projected closing price is: 5,715.80.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 25 white candles and 25 black 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 81.8587. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 4 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 42.62. 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 buy 21 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 -21. This is not a topping or bottoming area. The last signal was a buy 4 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 0 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed down -3.200 at 5,725.100. Volume was 15% above average (neutral) and Bollinger Bands were 42% wider than normal.

Open High Low Close Volume___
5,728.3005,737.6005,706.7005,725.100 694,821,952

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 5,700.74 5,910.78 6,044.41
Volatility: 11 17 12
Volume: 612,014,272 616,579,968 582,579,200

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 5.3% below its 200-period moving average and is in an downward 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 bearish on .AXJO and have had this outlook for the last 59 periods.

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