Australia: S&P/ASX 200 (.AXJO) market reaches the highest value in three weeks

Australia: S&P/ASX 200 (.AXJO) market reaches the highest value in three weeks

Australia: S&P/ASX 200 (.AXJO) market reaches the highest value in three weeks

Investors continue to shrug of concerns over the coronavirus with Australia’s market reaching the highest value in three weeks on Tuesday, and taking 24 companies in the S&P/ASX 200 index up to one-year highs. Trading took a ‘risk-on’ attitude with investors snapping up stocks that dipped on profit warnings or poor results, and volatility indices remain at long-term average levels.

The continuing buying comes from confidence among traders – even when faced with the rising death toll and spread of the virus – that governments and regulators want to avoid a market crash, according to the equities research team at Macquarie.

The benchmark S&P/ASX 200 Index climbed 42.8 points, or 0.6 per cent, to 7055.30, moving back to within 1.3 per cent of the record highs hit three weeks ago.

All sectors finished higher led by information technology, which gained 1.7 per cent. Appen soared 4.5 per cent to $26.77 while Afterpay Touch increased 2.3 per cent to $39.39.

Communications added 1 per cent, helped by a 1.8 per cent surge in Telstra shares to $3.89.

Steadfast Group jumped 5.6 per cent to 3.99 while Avita Medical gained 5.2 per cent to $0.805, rounding out the top three list. Domino’s Pizza receives an honourable mention, climbing 4.7 per cent to close at $57.55.

Healthcare rose 0.7 per cent to a fresh record high, supported largely by CSL which jumped 0.9 per cent to $325.73. The healthcare heavyweight will release its half-year profit result on Wednesday.
Cochlear was among the handful of healthcare stocks to go backwards. It fell to $232 on the open after downgrading its guidance on disruptions caused by the coronavirus outbreak in China, but was quickly bought up at that price to close at $236.47.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 7,215.83.

The projected lower bound is: 6,902.96.

The projected closing price is: 7,059.39.

Candlesticks

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 30 white candles and 20 black candles for a net of 10 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 79.8884. This is not an overbought or oversold reading. The last signal was a sell 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 58.46. 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 12 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 38. 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 sell 9 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 42.800 at 7,055.300. Volume was 10% above average (neutral) and Bollinger Bands were 28% narrower than normal.

Open     High      Low     Close     Volume___
7,012.5007,070.2007,012.5007,055.300 618,727,360
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 7,004.48 6,881.54 6,671.78
Volatility: 12 15 14
Volume: 643,961,280 548,627,968 615,468,352

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 5.7% above its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 22 periods.

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