Australia: S&P/ASX 200 (.AXJO) moves higher on energy sector surge
The Australian sharemarket has closed higher for a third day, with gains across every sector except consumer discretionary shares.
The benchmark S&P-ASX 200 index finished on Tuesday up 56.1 points to 6787.5, while the broader all ordinaries was up 54.2 points to 6889.8.
“There’s plenty of green across the screen, that is for sure,” Australian Stock Report senior advisor Ben Le Brun said.
“It seems to be across the board today, that’s very nice to see.”
Mr Le Brun said optimism about a US-China trade deal and all time closing highs set by all three major US indexes on Monday helped propel the Australian market.
“We do have the potential for a prolonged Santa Claus rally,” he said.
Health care shares were the biggest gainers, up 2.0 per cent as a whole as CSL climbed 2.3 per cent to hit another all-time high at $279.73.
Mr Le Brun said he was running out of superlatives to describe the blood plasma company, whose shares are up 51.1 per cent this year.
The energy sector was the second-biggest gainer, up 1.8 per cent, as Caltex Australia jumped 13.4 per cent to a 15-month high of $33.79.
The refiner and petrol station operator said it was considering a $8.6 billion, $34.50-per-share takeover offer from Canadian convenience store operator Alimentation Couche-Tard, owner of the Circle K brand.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 6,651.32.
The projected upper bound is: 6,927.38.
The projected lower bound is: 6,651.31.
The projected closing price is: 6,789.34.
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 31 white candles and 19 black candles for a net of 12 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 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 59.6947. 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 56.92. 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 101 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 78. This is not a topping or bottoming area. The last signal was a buy 2 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 3 period(s) ago.
Rex Takasugi – TD Profile
S&P/ASX 200 closed up 56.100 at 6,787.500. Volume was 67% above average (neutral) and Bollinger Bands were 39% narrower 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: 6,743.22 6,688.56 6,498.63
Volatility: 15 13 13
Volume: 632,248,448 611,958,976 639,443,200
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 4.4% above its 200-period moving average and is in an upward 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 bullish on .AXJO and have had this outlook for the last 21 periods.