Australia: S&P/ASX 200 (.AXJO) set to edge higher as Apple spooks markets

Australia: S&P/ASX 200 (.AXJO) set to edge higher as Apple spooks markets

Australia: S&P/ASX 200 (.AXJO) set to edge higher as Apple spooks markets

The Australian sharemarket is poised to open slightly higher on a busy day on the reporting season calendar. At 7.30am AEDT, futures are pointing to a gain of 10 points, or 0.1 per cent, at the start of the session.

1. Apple’s downgrade spooks markets: Market sentiment was undermined yesterday, after Apple Inc. released a press-statement stating that it foresees a material hit to its revenue in the coming quarter from the effects of the coronavirus.

Citing disrupted supply chains and a weaker Chinese consumer as the particular causes, the news came as a stark reminder to market participants of the fundamental impacts of the coronavirus outbreak. Asian stocks tumbled yesterday after the news dropped, while Apple shares themselves shed 2 per cent in Wall Street trade.

2. Global stocks take a little spill: Global stock indices took a spill overnight, as the Apple news worked its way through the market. Asian stocks took the biggest hit, with the Nikkei shedding 1.40 per cent, and the Hang Seng losing 1.54 per cent.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 7,284.85.

The projected lower bound is: 7,022.82.

The projected closing price is: 7,153.83.

Candlesticks

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 31 white candles and 19 black candles for a net of 12 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 80.9190. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 6 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 64.55. 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 sell 18 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 98. This is not a topping or bottoming area. The last signal was a sell 1 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 4 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 30.900 at 7,144.600. Volume was 50% above average (neutral) and Bollinger Bands were 10% narrower than normal.

Open     High      Low     Close     Volume___
7,113.7007,144.6007,102.9007,144.600 866,409,920
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 7,084.46 6,924.15 6,695.81
Volatility: 8 12 14
Volume: 665,367,936 558,969,920 619,137,152

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 6.7% above its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 bullish on .AXJO and have had this outlook for the last 28 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.