Australia: S&P/ASX 200 (.AXJO) massive swings in several companies after their results disappointed

Australia: S&P/ASX 200 (.AXJO) massive swings in several companies after their results disappointed

Australia: S&P/ASX 200 (.AXJO) massive swings in several companies after their results disappointed

The S&P/ASX 200 hit a high of 6119 around lunch time today and managed to stay above the 6100 level to close at 6106.9 this afternoon.

There were massive swings in several companies after their results disappointed, or surprised, the market greatly.

Blackmores ended the day 24.8 per cent lower at $92.86 and Emeco closed 24.2 per cent lower at $9.63. Health sector heavyweight Cochlear dropped a massive 8.14 per cent to $178.58, which wiped three and a half points off the market. Seven West Media dropped nearly 8 per cent to 52 cents on a poor outlook for the metropolitan advertising market.

Meanwhile on the upside Altium ended the day 20.3 per cent higher at $32.56and IOOF closed 16.4 per cent higher at 6.17 per cent.

BHP says it will not pay a special dividend, as many shareholders expected, but will pay a US55 cents dividend payable 26 March.

In the first half of 2018-19 BHP’s total revenue was flat at $US20.7 billion, and total profit is up 87 per cent to $US3.7 billion.

Overall, the bias in prices is: Upwards.

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

By the way, prices are vulnerable to a correction towards 5,925.48.

The projected upper bound is: 6,253.61.

The projected lower bound is: 5,977.73.

The projected closing price is: 6,115.67.

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 29 white candles and 21 black candles for a net of 8 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 67.9534. This is not an overbought or oversold reading. The last signal was a sell 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 72.22. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 4 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 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 0 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 17.100 at 6,106.900. Volume was 3% above average (neutral) and Bollinger Bands were 7% wider than normal.

Open High Low Close Volume___
6,089.8006,119.5006,081.4006,106.900 636,473,792

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

Moving Averages: 10-period 50-period 200-period
Close: 6,071.58 5,795.22 6,008.62
Volatility: 8 15 14
Volume: 633,043,456 594,168,576 592,018,432

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 1.6% 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 30 periods. Our momentum oscillator is currently indicating that .AXJO is currently in an overbought condition. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

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