Australia: S&P/ASX 200 (.AXJO) poised to edge higher at open
Australian shares are poised to open modestly higher, amid a rally in tech and media stocks in New York. ASX futures were up 13 points at 6am AEST. The Australian dollar was little changed.
Investors unimpressed by Telstra’s big news: Shareholder hopes that Telstra’s strategic announcement would herald a new dawn were dashed the moment the ASX opened for trade on Wednesday morning.
A rally in bank stocks and a record high for Macquarie Group pushed the Australian sharemarket to a fresh decade high on Wednesday.
The S&P/ASX 200 Index closed at 6172, up 70 points. or 1.2 per cent, topping the previous 10-year high set in January of 6135 points.
“Today’s rally is really about the financials playing catch-up,” said Romano Sala Tenna at Katana Asset Management. “It’s not surprising that financials are catching a bid. The differential between financials and the market had become quite stretched.”
Banks may have passed “peak fear” as the royal commission enters into its final stages, rhetoric around the sector “has turned a bit more balanced,” and investors “are starting to see value”, he said.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 6,018.37.
The projected upper bound is: 6,260.85.
The projected lower bound is: 6,098.91.
The projected closing price is: 6,179.88.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
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 29 white candles and 21 black candles for a net of 8 white candles.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 86.3549. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 16 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 68.53. 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 25 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 185.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 5 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 3 period(s) ago.
Rex Takasugi – TD Profile
S&P/ASX 200 closed up 70.500 at 6,172.600. Volume was 16% above average (neutral) and Bollinger Bands were 32% narrower than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 6,069.49 6,009.91 5,938.44
Volatility: 10 9 10
Volume: 616,315,200 570,123,520 547,928,704
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 3.9% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 14 periods.
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