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

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

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

The Australian share market is expected to open the day higher on Thursday. According to the latest SPI futures, the ASX 200 is expected to start the day 0.1% or 6 points higher. This follows a positive night of trade on Wall Street which late in the session sees the Dow Jones up 0.35%, the S&P 500 up 0.3%, and the Nasdaq 0.25% higher.

Telstra results.

It looks set to be one of biggest days in recent memory for the Telstra Corporation Ltd (ASX: TLS) share price on Thursday. This morning the telco giant will release its interim results and is likely to reveal its dividend plans for FY 2019. The market appears to be expecting a dividend cut, but opinion is divided on how severe the cut will be.

Oil prices climb higher.

Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) shares could be on the rise today after oil prices climbed higher again. According to Bloomberg, the WTI crude oil price rose 1.8% to US$54.06 a barrel and the Brent crude oil price pushed 1.9% higher to US$63.62 a barrel.

Treasury Estates results.

The Treasury Wine Estates Ltd (ASX: TWE) share price could be on the move this morning when it releases its half year results. Full year EBITS guidance of 25% is expected to be reiterated by management and a progress report on its new distribution strategy in the United States should be provided

Other results due to be released.

In addition to Telstra and Treasury Wine Estates, results are scheduled to be released by waste management company Cleanaway Waste Management Ltd (ASX: CWY), fund manager Magellan Financial Group Ltd (ASX: MFG), mining giant South32 Ltd(ASX: S32), and leading insurer Suncorp Group Ltd (ASX: SUN).

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 5,897.01.

The projected upper bound is: 6,223.42.

The projected lower bound is: 5,915.98.

The projected closing price is: 6,069.70.

Candlesticks

A black body occurred (because prices closed lower 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 27 white candles and 23 black candles for a net of 4 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 72.1396. This is not an overbought or oversold reading. The last signal was a sell 0 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 69.15. This is not a topping or bottoming area. However, the RSI just crossed below 70 from a topping formation. This is a bearish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 0 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 82. 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 6 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed down -15.500 at 6,063.600. Volume was 9% above average (neutral) and Bollinger Bands were 3% wider than normal.

Open High Low Close Volume___
6,079.1006,094.0006,053.0006,063.600 664,539,968

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

Moving Averages: 10-period 50-period 200-period
Close: 6,001.82 5,765.17 6,008.69
Volatility: 13 17 14
Volume: 670,839,808 605,345,920 590,051,328

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 0.9% above its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 26 periods.

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