Australia: S&P/ASX 200 (.AXJO) market has suffered its worst loss in five months

Australia: S&P/ASX 200 (.AXJO) market has suffered its worst loss in five months

Australia: S&P/ASX 200 (.AXJO) market has suffered its worst loss in five months

The Australian share market has suffered its worst loss in five months amid jitters on global growth and fears the US is picking a second trade war, this one with Mexico.

The benchmark S&P/ASX200 index closed down 76.4 points, or 1.19 per cent, to 6,320.5 points at 1615 AEST on Monday, while the broader All Ordinaries was down 81 points, or 1.25 per cent, to 6,410.8.

It was the sixth of eighth losing sessions for the ASX200 and its worst day since the index lost 88.6 points on January 2.

“I think it’s had a bit to do with geopolitical tensions,” including Donald Trump’s threat to impose tariffs on Mexico, Shayne Heffernan, CEO and Founder of Heffx said of Monday’s losses.

“These things are not helpful.”

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vul

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 6,267.54.

The projected upper bound is: 6,439.36.

The projected lower bound is: 6,207.85.

The projected closing price is: 6,323.60.

The projected upper bound is: 27,632.95.

The projected lower bound is: 26,054.16.

The projected closing price is: 26,843.56.

Candlesticks

A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
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 31 white candles and 19 black candles for a net of 12 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 11.4098. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 5 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 44.49. 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 7 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 -79. This is not a topping or bottoming area. The last signal was a sell 6 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 sell 2 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed down -76.400 at 6,320.500. Volume was 1% below average (neutral) and Bollinger Bands were 38% wider than normal.

Open High Low Close Volume___
6,396.9006,396.9006,320.5006,320.500 628,719,232

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

Moving Averages: 10-period 50-period 200-period
Close: 6,444.48 6,302.90 6,042.92
Volatility: 10 12 14
Volume: 640,526,208 594,669,056 619,438,272

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 4.6% 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 32 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.

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HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

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