Australia: S&P/ASX 200 (.AXJO) rebounded after China and the United States agreed to a trade ceasefire at the G20 summit

Australia: S&P/ASX 200 (.AXJO) rebounded after China and the United States agreed to a trade ceasefire at the G20 summit

Australia: S&P/ASX 200 (.AXJO) rebounded after China and the United States agreed to a trade ceasefire at the G20 summit 

Australian markets have rebounded after China and the United States agreed to a trade ceasefire at the G20 summit over the weekend.

US President Donald Trump agreed to hold off for three months — until March 1 — before he increases tariffs on $US250 billion worth of Chinese imports.

In the meantime, negotiators from Beijing and Washington will attempt to negotiate a deal to de-escalate their trade war, which has plagued global markets for the past year.

The ASX 200 closed 1.8 per cent higher at 5,771, essentially clawing back its losses from the past three weeks.

Almost nine out of 10 stocks in the benchmark index traded higher.

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 5,895.91.

The projected upper bound is: 5,928.37.

The projected lower bound is: 5,597.40.

The projected closing price is: 5,762.89.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
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 61.0567. This is not an overbought or oversold reading. The last signal was a sell 1 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 49.06. 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 24 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 68. This is not a topping or bottoming area. The last signal was a buy 7 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 up 104.000 at 5,771.200. Volume was 6% above average (neutral) and Bollinger Bands were 37% wider than normal.

Open High Low Close Volume___
5,667.2005,771.2005,667.2005,771.200 645,726,848

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

Moving Averages: 10-period 50-period 200-period
Close: 5,704.39 5,883.69 6,041.46
Volatility: 18 18 13
Volume: 691,608,576 618,143,424 586,806,208

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 4.5% below its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 2 periods.

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