Australia: S&P/ASX 200 (.AXJO) poised for a big week of earnings

Australia: S&P/ASX 200 (.AXJO) poised for a big week of earnings

Australia: S&P/ASX 200 (.AXJO) poised for a big week of earnings

Investors are poised for a big week of earnings, with a number of the local sharemarket’s most shorted stocks set to report their results this week.

JB Hi-Fi, Super Retail Group, IOOF Holdings, Amcor, Bendigo & Adelaide Bank and AMP will all report earnings this week, with a combined $2.7 billion sitting in short positions against them.

The local sharemarket is set for a mixed start to the week’s trading, with ASX Futures sitting 4 points, or 0.1 per cent, lower at 6007 on Sunday.

While AMP, IOOF Holdings and Bendigo & Adelaide Bank all closed the week stronger in the wake of the royal commission final report, a disappointing retail trade print on Monday saw JB Hi-Fi shares slide.

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 5,878.17.

The projected upper bound is: 6,221.28.

The projected lower bound is: 5,913.62.

The projected closing price is: 6,067.45.


A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 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 87.2513. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 13 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 70.49. 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 buy 70 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 108.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 9 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 buy 4 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed down -10.700 at 6,060.800. Volume was 17% below average (neutral) and Bollinger Bands were 1% wider than normal.

Open High Low Close Volume___
6,071.5006,084.9006,028.6006,060.800 505,781,312

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

Moving Averages: 10-period 50-period 200-period
Close: 5,963.64 5,751.99 6,008.31
Volatility: 14 17 14
Volume: 674,592,896 604,965,248 589,736,960

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 0.9% 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 24 periods. Our momentum oscillator is currently indicating that .AXJO is currently in an overbought condition.

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