Australia: S&P/ASX 200 (.AXJO) rises more than three per cent as stimulus-driven gains carried into a second session
The Australian share market has risen more than three per cent as stimulus-driven gains carried into a second session.
The S&P/ASX200 benchmark index was up another 140.3 points, or 2.71 per cent at 5,321.7 by 1200 AEDT on Tuesday.
It had climbed by as much as 3.5 per cent to 5,364.7 in early trade, marking the benchmark’s highest point in 11 sessions and a rise of more than 21 per cent from a seven-year low hit just last week.
The ASX 200 banked a record 7.0 per cent gain in the previous session following the federal government’s announcement of another $130 billion in COVID-19 stimulus measures.
The All Ordinaries index was also up on Tuesday, rising 148.6 points, or 2.86 per cent, to 5,342.6 by midday.
Miners and consumer staples continued to lag but were more than offset by a strong performance by the heavyweight financials – with all four big banks on the ascendancy.
Commonwealth Bank gained 6.3 per cent to $67.98, Westpac was up 7.89 per cent to $17.435, ANZ rose 6.23 per cent to $17.83 and NAB jumped 6.99 per cent to $17.45.
Macquarie Group climbed 5.49 to $90.45, while Bank of Queensland and Bendigo and Adelaide Bank added 3.17 per cent and 5.2 per cent respectively.
Elsewhere, mining giant BHP was down 0.96 per cent to $29.91 and Rio Tinto slipped 0.71 per cent to $86.92 over worries about prolonged shutdowns due to the coronavirus, reinforcing fears of tumbling demand for industrial metals.
The local market, however, has seemingly been energised by the federal government’s new stimulus to help businesses through the coronavirus pandemic.
The S&P/ASX200 benchmark index finished Monday up 399 points – a record 7.0 per cent.
In an unprecedented move, employees will receive a flat-rate payment of $1500 per fortnight through their employers in a bid to lessen the economic blow caused by COVID-19.
More than 110,000 businesses have signed up for the scheme since it was announced on Monday afternoon.
The payment amounts to about 70 per cent of the median wage.
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 6,068.10.
The projected upper bound is: 5,777.19.
The projected lower bound is: 4,714.30.
The projected closing price is: 5,245.74.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.
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 75.2134. This is not an overbought or oversold reading. 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 44.39. 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 4 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 85. 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 100.300 at 5,281.700. Volume was 22% below average (neutral) and Bollinger Bands were 188% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 4,925.13 6,313.13 6,601.01
Volatility: 90 63 34
Volume: 1,412,390,784 1,051,428,608 723,086,528
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 20.0% 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 moderate flows of volume out of .AXJO (mildly bearish). Our trend forecasting oscillators are currently bearish on .AXJO and have had this outlook for the last 24 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.