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Australia: S&P/ASX 200 (.AXJO) is set for a positive start to the week


Australia: S&P/ASX 200 (.AXJO) is set for a positive start to the week

Australia’s share market is set for a positive start to the week, getting a bounce from strong US jobs data.

It comes after a rally on Wall Street and European markets in response to stronger than expected American payroll numbers and falling unemployment.

Looking further into the week, polls predict a conservative victory in Thursday’s UK election, with incumbent Prime Minister Boris Johnson hoping voters will back his plan for a soft Brexit.

Back home, National Australia Bank’s latest business survey on Tuesday is set to show confidence edging down slightly for the month of October.

It’s a similar expectation for the Westpac-Melbourne Institute consumer sentiment index due out on Wednesday.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 6,868.28.

The projected lower bound is: 6,545.35.

The projected closing price is: 6,706.82.


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 32 white candles and 18 black candles for a net of 14 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 24.9366. This is not an overbought or oversold reading. The last signal was a buy 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 47.89. 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 109 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 -60. This is not a topping or bottoming area. The last signal was a buy 0 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 2 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 24.000 at 6,707.000. Volume was 25% below average (neutral) and Bollinger Bands were 7% narrower than normal.

Open     High      Low     Close     Volume___
6,683.0006,712.3006,681.8006,707.000 477,902,496
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 6,765.06 6,696.54 6,524.73
Volatility: 20 15 13
Volume: 629,462,592 586,684,544 634,629,184

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 2.8% 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 2 periods.

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