Australia: S&P/ASX 200 (.AXJO) poised to start Monday trade on a positive note

Australia: S&P/ASX 200 (.AXJO) poised to start Monday trade on a positive note

Australia: S&P/ASX 200 (.AXJO) poised to start Monday trade on a positive note

The sharemarket is poised to start Monday trade on a positive note ahead of what is likely to be a volatile week dominated by the renewed US-China trade skirmish and the release of key unemployment data.

Futures markets suggest the benchmark S&P/ASX 200 Index will open 0.5 per cent higher following a late rebound on Wall Street’s final session, sparked by renewed hopes of a deal as American and Chinese trade representatives offered some encouraging words.

The heightened trade tensions come as the Reserve Bank of Australia on Friday downgraded its GDP growth forecasts for 2019 to 2.6 per cent from 3 per cent and ahead of unemployment data on Thursday that may provide the trigger for a rate cut as soon as next month.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 6,409.24.

The projected lower bound is: 6,219.86.

The projected closing price is: 6,314.55.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 31 white candles and 19 black candles for a net of 12 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 43.2960. This is not an overbought or oversold reading. The last signal was a sell 8 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 54.72. 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 9 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 -35. This is not a topping or bottoming area. The last signal was a sell 8 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 sell 4 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 15.600 at 6,310.900. Volume was 14% below average (neutral) and Bollinger Bands were 23% narrower than normal.

Open High Low Close Volume___
6,295.3006,317.4006,283.6006,310.900 516,076,000

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

Moving Averages: 10-period 50-period 200-period
Close: 6,318.98 6,235.25 6,032.92
Volatility: 9 10 14
Volume: 553,346,176 617,631,424 612,492,224

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 4.6% above its 200-period moving average and is in an upward trend. Volatility is low 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 16 periods.

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