Australia: S&P/ASX 200 (.AXJO) recorded its fifth straight advance

Australia: S&P/ASX 200 (.AXJO) recorded its fifth straight advance

Australia: S&P/ASX 200 (.AXJO) recorded its fifth straight advance

Australian shares are set to open moderately higher after Wall Street rebounded for a second consecutive day.

The Australian dollar has slipped to 70.7 US cents and 62.5 euro cents.

But it fell sharply to 55.4 British pence — after the UK’s Brexit secretary, Dominic Raab, said he expects an exit deal to be finalised with the European Union by November 21.

National Australia Bank has delivered a mixed set of full-year results this morning.

NAB’s annual cash earnings fell sharply, by 14 per cent, to $5.7 billion — but its net profit rose 5 per cent to $5.5 billion.

The bank said its results were impacted by restructuring expenses and the cost of customer compensation related to the banking royal commission.

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 6,019.24.

The projected upper bound is: 5,977.04.

The projected lower bound is: 5,688.41.

The projected closing price is: 5,832.73.

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 24 white candles and 26 black candles for a net of 2 black candles.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 87.2032. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 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 41.84. 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 2 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 17. This is not a topping or bottoming area. The last signal was a buy 2 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 0 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 10.500 at 5,840.800. Volume was 22% above average (neutral) and Bollinger Bands were 118% wider than normal.

Open High Low Close Volume___
5,830.3005,877.2005,820.7005,840.800 712,491,264

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

Moving Averages: 10-period 50-period 200-period
Close: 5,805.02 6,080.89 6,062.27
Volatility: 22 15 13
Volume: 665,643,456 622,169,536 582,120,960

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 3.7% below its 200-period moving average and is in an downward 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 bearish on .AXJO and have had this outlook for the last 40 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.

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