Australia: S&P/ASX 200 (.AXJO) Reserve Bank left interest rates on hold

Australia: S&P/ASX 200 (.AXJO) Reserve Bank left interest rates on hold

Australia: S&P/ASX 200 (.AXJO) Reserve Bank left interest rates on hold

The Australian sharemarket steadily climbed on volume well-below average as the Reserve Bank left interest rates on hold and retained its upbeat growth outlook.

Following gains of 0.7 per cent on Wall Street last night, the S&P-ASX climbed 57.1 points, or 0.98 per cent, to 5875.2 with miners, real estate and consumer staples stocks leading the market, but volume was 43 per cent below average.

The Reserve statement said the low level on rates was supporting the economy, but progress towards its inflation target would be gradual and growth of 3.5 per cent was expected next year.

Government 10-year yields slipped 1.8 points to 2.724 per cent.

Westpac currency strategist David Rennie said a more confident RBA statement on growth, unemployment and inflation failed to inspire much movement in the dollar, but it could rally further once the market digested forecast changes.

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 6,015.41.

The projected upper bound is: 6,012.24.

The projected lower bound is: 5,720.98.

The projected closing price is: 5,866.61.


A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black 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 81.6364. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 5 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 46.38. 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 buy 5 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 37. This is not a topping or bottoming area. 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 3 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 57.100 at 5,875.200. Volume was 34% below average (neutral) and Bollinger Bands were 49% wider than normal.

Open High Low Close Volume___
5,855.9005,877.2005,818.1005,875.200 383,626,112

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

Moving Averages: 10-period 50-period 200-period
Close: 5,790.52 6,055.32 6,059.81
Volatility: 22 16 13
Volume: 656,645,440 610,536,576 582,544,576

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 3.0% below its 200-period moving average and is in an downward 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 bearish on .AXJO and have had this outlook for the last 43 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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