Australia: S&P/ASX 200 (.AXJO) Opening Lower

Australia: S&P/ASX 200 (.AXJO) Opening Lower

Australia: S&P/ASX 200 (.AXJO) Opening Lower

Australian shares rebounded from a 21-month low and ended a four-day losing streak on Thursday, as lithium miners and major banks led the market higher.

The S&P/ASX 200 Index rose 48.5 points, or 0.9 per cent, to 5691.3 while the broader All Ordinaries advanced 48.2 points, or 0.8 per cent, to 5700.3.

“With the 200 Index retesting 5,600 support last seen in late October buyers have entered the market on a valuation basis with the banks leading the way,” said City Index market analyst Gary Burton.

ANZ led the gains for the major four, lifting 1.3 per cent to $25.75, NAB rose 0.9 per cent to $24.23 and Commonwealth Bank edged 0.8 per cent higher to $70.63. Westpac rallied from a loss earlier in the day as chief executive Brian Hartzer faced the banking royal commission. Its shares closed 0.4 per cent higher at $25.68.

Lithium miner Mineral Resources was among the best performers on the market on Thursday after the company agreed to sell a half share in its Wodgina lithium project to battery metals giant Albemarle in a deal worth $US1.15 billion ($1.58 billion). The company is expected to push ahead with plans to build a lithium hydroxide plant at the mine. Its shares rose 26.6 per cent to $15.76.

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 5,835.46.

The projected lower bound is: 5,529.65.

The projected closing price is: 5,682.55.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 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 34.4410. This is not an overbought or oversold reading. The last signal was a buy 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 36.52. 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 buy 17 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 -85. This is not a topping or bottoming area. The last signal was a buy 0 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 4 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 48.500 at 5,691.300. Volume was 9% above average (neutral) and Bollinger Bands were 45% wider than normal.

Open High Low Close Volume___
5,642.8005,695.4005,642.8005,691.300 651,883,136

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 5,759.63 5,947.99 6,047.33
Volatility: 15 17 12
Volume: 623,025,728 614,973,888 582,370,368

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 5.9% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of .AXJO at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .AXJO and have had this outlook for the last 55 periods.

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