Australia: S&P/ASX 200 (.AXJO) poised to drop to start the week

Australia: S&P/ASX 200 (.AXJO) poised to drop to start the week

Australia: S&P/ASX 200 (.AXJO) poised to drop to start the week

Australian shares are poised to drop to start the week, weighed by a sell-off on Wall Street and among base metals. ASX futures were 28 basis points lower. The Australian dollar was buying US70.57¢.

In addition to Wall Street’s slide into the weekend, base metals were hit in London trade with copper falling 1.9 per cent and aluminium retracing 1.8 per cent. That knocked the wind out of miners. The FTSE traded shares of Rio Tinto and BHP Billiton shed 4 per cent and 3.9 per cent respectively. In New York, Rio ended down 2.7 per cent and BHP slid 1.7 per cent.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 6,269.37.

The projected lower bound is: 6,097.04.

The projected closing price is: 6,183.21.


A white body occurred (because prices closed higher 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 22 white candles and 28 black candles for a net of 6 black candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 47.5405. This is not an overbought or oversold reading. The last signal was a buy 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 48.57. 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 74 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 buy 1 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 1 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 9.200 at 6,185.500. Volume was 18% below average (neutral) and Bollinger Bands were 54% narrower than normal.

Open High Low Close Volume___
6,176.3006,199.2006,160.6006,185.500 469,844,160

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

Moving Averages: 10-period 50-period 200-period
Close: 6,176.03 6,236.10 6,081.31
Volatility: 7 9 11
Volume: 536,443,648 586,715,584 562,595,904

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 1.7% above 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 21 periods.

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