Australia: S&P/ASX 200 (.AXJO) President Donald Trump’s tariff hikes looms

Australia: S&P/ASX 200 (.AXJO) President Donald Trump’s tariff hikes looms

Australia: S&P/ASX 200 (.AXJO) President Donald Trump’s tariff hikes looms

Australian shares fell to a two-week low on Wednesday after sentiment surrounding US-China trade negotiations swung suddenly from positive to negative in Northern Hemisphere trading.

The S&P/ASX 200 Index slid 26.6 points, or 0.4 per cent, to 6269.1 while the broader All Ordinaries fell 31.7 points, or 0.5 per cent, to 6351.8.

Shares on Wall Street plummeted on Tuesday, with traders gripped by fear as President Donald Trump’s tariff hikes loomed.

Shayne Heffernan said, he believed there was some profit-taking in the US markets, which he noted was hovering around record highs. Investors were looking for “any excuse to take profits,” he said.

The local sharemarket dipped by 0.8 per cent inside the opening hour of trading but recovered ground through the session.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 6,368.86.

The projected lower bound is: 6,173.41.

The projected closing price is: 6,271.14.

Candlesticks

A black body occurred (because prices closed lower 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 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 27.6886. This is not an overbought or oversold reading. The last signal was a sell 6 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 49.38. 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 7 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 -86. This is not a topping or bottoming area. 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 sell 2 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed down -26.600 at 6,269.100. Volume was 6% below average (neutral) and Bollinger Bands were 17% narrower than normal.

Open High Low Close Volume___
6,295.7006,295.7006,241.5006,269.100 562,288,512

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

Moving Averages: 10-period 50-period 200-period
Close: 6,335.13 6,229.42 6,032.45
Volatility: 11 10 14
Volume: 568,098,752 625,400,192 612,168,640

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 3.9% 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 14 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.

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