Home Stocks Australia Australia: S&P/ASX 200 (.AXJO) poised to open higher

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

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

The Australian share market looks set to start the week on a high. According to the latest SPI futures, the ASX 200 index is poised to open 0.1% or 8 points higher this morning.

This is despite a disappointing end to the week on Wall Street which saw the Dow Jones edge 0.1% lower, the S&P 500 drop 0.15%, and the Nasdaq sink 0.5% lower.

Australian dollar tumbles

Stronger than expected retail sales data out of the United States on Friday appears to have ruled out a rate cut by the U.S. Federal Reserve in the near term and strengthened the U.S. dollar.

The knock-on effect of this has been a sharp decline by the Australian dollar. It fell as low as 68.6 U.S. cents on Friday, losing almost 2% of its value over the week.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 6,656.94.

The projected lower bound is: 6,416.40.

The projected closing price is: 6,536.67.

Candlesticks

A black body occurred (because prices closed lower than they opened).
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 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 76.6523. 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 62.84. 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 16 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 85. 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 3 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed down -23.100 at 6,530.900. Volume was 9% below average (neutral) and Bollinger Bands were 15% wider than normal.

Open High Low Close Volume___
6,554.0006,555.4006,527.0006,530.900 571,904,448

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

Moving Averages: 10-period 50-period 200-period
Close: 6,455.56 6,356.17 6,050.84
Volatility: 13 12 14
Volume: 641,679,232 590,511,104 617,625,088

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 7.9% 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 4 periods.

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