Australia: S&P/ASX 200 (.AXJO) rally on rising trade hopes

Australia: S&P/ASX 200 (.AXJO) rally on rising trade hopes

Australia: S&P/ASX 200 (.AXJO) rally on rising trade hopes

Investors unleashed a broad-based rally on Monday in response to accommodative policy from China and the Federal Reserve allaying fears it is hell-bent on raising interest rates, with hope of further gains to come following the arrival of a US trade delegation in Beijing.

The S&P/ASX 200 Index advanced more than 1 per cent to 5683.20 points, and Japan’s Nikkei rose almost 3 per cent, as sentiment turned bullish led by Wall Street’s surge on Friday. The Australian dollar held above the US70¢ level after touching a decade-low last week of US67.49¢ and showing the danger of being short the currency if the risk-on mood continues.

Resources stocks were the strongest performers capitalising on a lift in commodity prices; BHP Group and Fortescue Metals Group rose more than 3 per cent and Rio Tinto more than 2 per cent.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 5,858.74.

The projected lower bound is: 5,501.83.

The projected closing price is: 5,680.28.

Candlesticks

A white body occurred (because prices closed higher 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 26 white candles and 24 black candles for a net of 2 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 65.0885. This is not an overbought or oversold reading. The last signal was a sell 3 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 53.16. 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 buy 46 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 116.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 3 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 5 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 63.800 at 5,683.200. Volume was 29% below average (neutral) and Bollinger Bands were 21% narrower than normal.

Open High Low Close Volume___
5,619.4005,716.2005,619.4005,683.200 439,614,880

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

Moving Averages: 10-period 50-period 200-period
Close: 5,585.89 5,699.78 6,003.04
Volatility: 21 20 14
Volume: 555,768,320 633,824,896 586,578,816

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 5.3% below 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 0 periods.

The following two tabs change content below.
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.

You must be logged in to post comments :  
CONNECT WITH