Australia: S&P/ASX 200 (.AXJO) managed to take back part of its coronavirus-related losses
The sharemarket managed to take back part of its coronavirus-related losses on Wednesday amid further efforts to control its spread even as Treasury Wine Estates lost a quarter of its value.
The S&P/ASX 200 Index firmed 37 points, or 0.5 per cent, to 7031, clawing back part of Tuesday’s 1.4 per cent loss. Treasury Wine, though, plummeted 26 per cent to $12.35.
Beijing has imposed travel bans and locked down parts of the country to contain the virus’ spread. It has also agreed that the World Health Organisation (WHO) can send in international experts ‘‘as soon as possible’’ to increase understanding of a new coronavirus and guide the global response to the outbreak.
The year had started very well for the Australian equity market, with the benchmark rising about 6 per cent in just under a month, Mr Doyle said. ‘‘If there’s a lot of liquidity searching for yield then risk assets are a good place to be,’’ he said.
The odds of a February 4 RBA rate cut slumped to 10 per cent after fourth-quarter inflation rose at a quicker-than-expected pace. CPI rose 0.7 on the previous three months, more than economists’ expectations of a 0.6 per cent gain. Rates traders, though, still price in a full interest rate cut by June.
The biggest session mover was Treasury Wine, which slumped after warning late on Tuesday that a US business downturn had prompted a downgrade of its full-year forecasts and a softer-than-expected first-half profit.
ClearView Wealth also fell 4.3 per cent after joining Treasury Wine with a confession season downgrade because of difficult conditions in the insurance market, including higher-than-expected lapses.
OZ Minerals added 2.9 per cent after fourth-quarter copper production rose 16 per cent to 28,659 tonnes from 24,663 tonnes in the previous three months.
Evolution Mining shares fell 2.1 per cent after producing 170,890 ounces of gold in the fourth quarter of 2019, down from 191,967 ounces in the third quarter.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 6,861.07.
The projected upper bound is: 7,197.56.
The projected lower bound is: 6,877.29.
The projected closing price is: 7,037.43.
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 31 white candles and 19 black candles for a net of 12 white candles.
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 31.5109. This is not an overbought or oversold reading. The last signal was a sell 3 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 58.99. 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 3 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 11. This is not a topping or bottoming area. The last signal was a sell 3 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 0 period(s) ago.
Rex Takasugi – TD Profile
S&P/ASX 200 closed up 37.000 at 7,031.500. Volume was 4% above average (neutral) and Bollinger Bands were 106% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 7,058.37 6,838.26 6,640.80
Volatility: 12 15 14
Volume: 535,554,656 544,776,832 611,103,744
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 5.9% 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 moderate flows of volume into .AXJO (mildly bullish). Our trend forecasting oscillators are currently bullish on .AXJO and have had this outlook for the last 13 periods.
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