Australia: S&P/ASX 200 (.AXJO) poised for modest opening gains

Australia: S&P/ASX 200 (.AXJO) poised for modest opening gains

Australia: S&P/ASX 200 (.AXJO) poised for modest opening gains

Australian shares are poised for modest opening gains as Wall Street managed to pare most losses in late trade to end mostly little changed.

ASX futures were up 16 points or 0.2% to 6633 near 6.30am AEST. The local currency was flat.

Industrials pulled the blue-chip Dow slightly higher and led the bellwether S&P 500’s nominal advance, while the tech-heavy Nasdaq posted its third straight decline.

The yield on the US 10-year surged 10 basis points to 1.74%.

Earlier Wall Street slipped amid renewed worries about China’s economy and the state of the US-China trade talks.

A senior White House adviser tamped down expectations for the next rounds of US-China trade talks, urging investors, businesses and the public to be patient about resolving the two-year trade dispute between the world’s two largest economies.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 6,777.82.

The projected lower bound is: 6,448.81.

The projected closing price is: 6,613.32.

Candlesticks

A black body occurred (because prices closed lower 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 28 white candles and 22 black candles for a net of 6 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 85.7481. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 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 53.50. 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 46 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 88. This is not a topping or bottoming area. The last signal was a sell 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 buy 9 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed down -33.900 at 6,614.100. Volume was 15% above average (neutral) and Bollinger Bands were 8% narrower than normal.

Open     High      Low     Close     Volume___
6,648.0006,654.8006,595.7006,614.100 746,334,080
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 6,584.06 6,627.76 6,244.13
Volatility: 11 16 14
Volume: 683,607,040 643,872,000 634,737,344

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% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into .AXJO (mildly bullish). Our trend forecasting oscillators are currently bullish on .AXJO and have had this outlook for the last 2 periods.

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