Australia: S&P/ASX 200 (.AXJO) poised to dip at open

Australia: S&P/ASX 200 (.AXJO) poised to dip at open

Australia: S&P/ASX 200 (.AXJO) poised to dip at open

Shares in Asia were mixed on Thursday as investors watched ongoing negotiations between the U.S. and China, with the two economic powerhouses reportedly closer to striking a deal to end a protracted trade dispute.

Mainland Chinese markets closed higher, with the Shanghai composite adding 0.94% to 3,246.57 and the Shenzhen component rising about 0.73% to 10,415.80. The Shenzhen composite also gained 0.447% to 1,780.02.

Over in Hong Kong, however, the Hang Seng index declined about 0.5%, as of its final hour of trading.

The Nikkei 225 in Japan rose fractionally to close at 21,724.95, while the Topix slipped 0.11% to end at 1,620.05.

Shares of Apple supplier Japan Display soared 8.33% by the time of market close, following a Reuters report that the company would supply organic light-emitting diode (OLED) screens for the Apple Watch later this year.

The supply deal would mark Japan Display’s foray into the OLED display market, Reuters reported, citing two sources familiar with the matter. The company currently supplies liquid crystal display screens for the iPhone XR.

In South Korea, the Kospi gained 0.15% to close at 2,206.53 as shares of chipmaker SK Hynix dropped 1.88%.

Australia’s ASX 200 declined 0.83% to end at 6,232.80 as the sectors declined, with the energy subindex dropping 1.86 percent as shares of oil companies fell. Santos shed 2.18%, Beach Energy dropped 4.31% and Woodside Petroleum slipped 2.07%.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 6,337.20.

The projected lower bound is: 6,143.96.

The projected closing price is: 6,240.58.

Candlesticks

A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 31 white candles and 19 black candles for a net of 12 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 81.1954. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 5 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 59.09. 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 19 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 116.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 5 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 1 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed down -52.200 at 6,232.800. Volume was 0% below average (neutral) and Bollinger Bands were 49% narrower than normal.

Open High Low Close Volume___
6,285.0006,285.0006,221.1006,232.800 638,833,728

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

Moving Averages: 10-period 50-period 200-period
Close: 6,192.20 6,114.66 6,026.57
Volatility: 11 10 14
Volume: 637,489,280 683,178,368 608,511,808

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 3.4% above its 200-period moving average and is in an downward trend. Volatility is 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 10 periods.

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