Australia: S&P/ASX 200 (.AXJO) relief rally and rotation in equities sparked by the election outcome was given a further boost
Australian shares closed higher for a sixth straight session on Wednesday, as the market rebounded from a loss during morning trade for the second time in as many days and extended its 11-year high.
The S&P/ASX 200 Index added 10.6 points, or 0.2 per cent, to close at 6510.7 while the broader All Ordinaries rose 13.7 points, or 0.2 per cent, to 6598.1.
“The relief rally and rotation in equities sparked by the election outcome was given a further boost from Tuesday’s RBA developments,” said Shayne Heffernan, CEO and Founder of Heffx.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 6,622.41.
The projected lower bound is: 6,411.27.
The projected closing price is: 6,516.84.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 31 white candles and 19 black candles for a net of 12 white candles.
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 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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 99.9741. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 16 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 70.64. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 17 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 172.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 5 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 2 period(s) ago.
Rex Takasugi – TD Profile
S&P/ASX 200 closed up 10.600 at 6,510.700. Volume was 2% above average (neutral) and Bollinger Bands were 11% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 6,360.79 6,262.45 6,037.29
Volatility: 12 11 14
Volume: 601,012,608 600,390,912 615,992,512
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.
S&P/ASX 200 is currently 7.8% above 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 24 periods. Our momentum oscillator is currently indicating that .AXJO is currently in an overbought condition.