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

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

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

Australian shares are poised to edge higher at the open of a week where central bankers are set to dominate. ASX futures are up 8 points or 0.1 per cent to 6565.

Local investors will be waiting for the latest RBA meeting minutes to be released Tuesday and for a midday Thursday speech in Adelaide by governor Philip Lowe.

Market highlights

ASX futures up 8 points or 0.1% to 6565

The S&P/ASX 200 is 16.1% higher so far this calendar year

  • AUD -0.6% to 68.72 US cents
  • On Wall St: Dow -0.1% S&P 500 -0.2% Nasdaq -0.5%
  • In New York: BHP -0.9% Rio -1.3% Atlassian -0.3%
  • In Europe: Stoxx 50 -0.3% FTSE -0.3% CAC -0.2% DAX -0.6%
  • Spot gold flat at $US1341.71 an ounce
  • Brent crude +1.1% to $US62.01 a barrel
  • US oil +0.4% to $US52.51 a barrel
  • Iron ore +0.1% to  $US110.30 a tonne
  • Dalian iron ore -2.3% to 769.50 yuan
  • LME aluminium -1.3% to $US1764.50 a tonne
  • LME copper -0.6% to $US5822 a tonne
  • 2-year yield: US 1.84% Australia 0.99%
  • 5-year yield: US 1.83% Australia 1.04%
  • 10-year yield: US 2.08% Australia 1.37% Germany -0.26%
  • 10-year US/Australia yield gap: 71 basis points

Overall, the bias in prices is: Upwards.

The projected upper bound is: 6,680.64.

The projected lower bound is: 6,440.84.

The projected closing price is: 6,560.74.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 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 82.2966. 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 66.32. 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 15 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 110.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 6 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 2 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 11.600 at 6,554.000. Volume was 8% below average (neutral) and Bollinger Bands were 16% wider than normal.

Open High Low Close Volume___
6,542.4006,559.5006,533.0006,554.000 585,180,800

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

Moving Averages: 10-period 50-period 200-period
Close: 6,442.16 6,350.40 6,049.94
Volatility: 13 12 14
Volume: 658,775,744 592,197,696 618,656,320

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 8.3% 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 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 3 periods.

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