Australia: S&P/ASX 200 (.AXJO) Pointing Lower at Open

Australia: S&P/ASX 200 (.AXJO) Pointing Lower at Open

Australia: S&P/ASX 200 (.AXJO) Pointing Lower at Open

Australian shares are poised to open lower, as copper and aluminium fell and Wall Street traded down. The Australian dollar lost 0.4 per cent, resuming its year-long slide.

Local investors await the release later today of the second quarter GDP statistics.

Wall Street slipped in its first trading day in September.

The US listed shares of both BHP and Rio dropped, reflecting in part a retreat in base metals with both copper and aluminium ending lower in London. Copper dropped 2.5 per cent.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 6,384.41.

The projected lower bound is: 6,205.61.

The projected closing price is: 6,295.01.

Candlesticks

A black body occurred (because prices closed lower than they opened).
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 24 white candles and 26 black candles for a net of 2 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 42.7991. This is not an overbought or oversold reading. The last signal was a sell 1 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 50.98. 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 51 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 -22. This is not a topping or bottoming area. The last signal was a sell 2 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 buy 3 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed down -17.800 at 6,293.100. Volume was 15% below average (neutral) and Bollinger Bands were 34% narrower than normal.

Open High Low Close Volume___
6,310.9006,314.9006,276.3006,293.100 484,581,952

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

Moving Averages: 10-period 50-period 200-period
Close: 6,295.88 6,266.08 6,060.34
Volatility: 8 9 11
Volume: 676,985,344 556,462,464 560,648,512

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 3.8% 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 3 periods.

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