Home Stocks Australia Australia: S&P/ASX 200 (.AXJO) poised to open sharply lower after President Donald...

Australia: S&P/ASX 200 (.AXJO) poised to open sharply lower after President Donald Trump took a harsh stance against China’s approach to trade

28
0

Australia: S&P/ASX 200 (.AXJO) poised to open sharply lower after President Donald Trump took a harsh stance against China’s approach to trade

All the big banks rose, with ANZ up 1.3 per cent to $28.28, Westpac up 0.4 per cent to $29.92, NAB up 0.6 per cent to also close at $29.92, and Commonwealth up 0.1 per cent to $82.10.

In the materials sector, mining heavyweight BHP dipped 1.0 per cent to $37.25 and Fortescue Metals fell 2.7 per cent to $8.74 on a broker downgrade, while Rio Tinto rose 0.2 per cent to $93.04.

Goldminers were higher after the price of the precious metal jumped one per cent in overnight trade, with Newcrest up 2.0 per cent, Northern Star up 3.3 per cent and Millennium Minerals up 7.0 per cent.

Tech stocks were the biggest losers, collectively down 1.1 per cent, with Wisetech Global falling 4.9 per cent, Afterpay dropping 1.4 per cent and Isignthis dropping 10.5 per cent to 94 cents.

Digital services company ARQ Group plummeted 33.3 per cent to 36 cents after announcing its chief executive was leaving, it expected to earn about $10 million less than expected this year and it was considering selling off pieces of the business.

The consumer staples sector was 0.5 per cent lower while consumer discretionary shares rose 0.6 per cent as a whole.

Wesfarmers rose 0.7 per cent to $40.17, while KFC franchisee Collins Foods and JB Hi-Fi both hit fresh all-time highs, gaining 0.9 per cent to $10.07 and 1.4 per cent to $34.63, respectively.

Treasury Wine Estate fell 4.8 per cent to $18.24 after an investor day update and the Australian Competition and Consumer Commission called for changes in the wine industry.

A2Milk dropped 3.0 per cent to a seven-month low $12.25 on a broker downgrade on concerns about its sales to China.

Fluence was up 8.7 per cent to 50 cents after the wastewater treatment provider said it would open a second assembly factory in China.

The Aussie dollar is buying US67.72¢, from US67.73¢ on Monday.

Technical Indicators

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 6,607.97.

The projected upper bound is: 6,910.09.

The projected lower bound is: 6,592.03.

The projected closing price is: 6,751.06.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 31 white candles and 19 black candles for a net of 12 white candles.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

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 72.7399. This is not an overbought or oversold reading. The last signal was a sell 2 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 65.07. 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 56 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 132.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 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 19 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed down -0.800 at 6,748.900. Volume was 11% below average (neutral) and Bollinger Bands were 13% narrower than normal.

Open     High      Low     Close     Volume___
6,749.7006,764.0006,745.3006,748.900 596,959,744
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 6,695.94 6,629.16 6,293.54
Volatility: 4 15 13
Volume: 775,347,072 685,982,016 639,341,760

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 7.2% above its 200-period moving average and is in an upward 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 very strong flows of volume into .AXJO (bullish). Our trend forecasting oscillators are currently bullish on .AXJO and have had this outlook for the last 12 periods.

Previous articleThe Street’s Key Stock Analysts Research Reports
Next articleSilver 1 OZ 999 NY (XAG=X) Price Retains Latest Rally
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.