Australia: S&P/ASX 200 (.AXJO) set to extend losses
The S&P/ASX 200 is down to where it was on June 15th at 6100.3 points as mining and energy stocks dragged. It was news from a Norwegian-owned mine in Brazil that did a lot of damage, with South32 losing 5.4 per cent and Alumina losing 7 per cent of their value after Norsk Hydro backflipped on its decision to close the worlds largest alumina refinery in northern Brazil.
All sectors were in the red with the smallest decline among real estate at 0.3 per cent. Even information technology, which houses MYOB (up 19 per cent) and Computershare (at historical highs), was down 0.3 per cent. This was due to a 5.5 per cent drop in Afterpay Touch to $16.73 and 2.8 per cent drop in Altium to $24.96.
ANZ Bank had the biggest drop among bank stocks on Monday, down 2.6 per cent, after announcing a $824 million hit to its full year results. And CSL continues to fall, down a further 1.5 per cent to $197.12.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 6,189.36.
The projected lower bound is: 6,004.12.
The projected closing price is: 6,096.74.
A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 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 41.1048. This is not an overbought or oversold reading. 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 37.91. 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 75 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 -194.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 2 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 sell 0 period(s) ago.
Rex Takasugi – TD Profile
S&P/ASX 200 closed down -85.200 at 6,100.300. Volume was 19% below average (neutral) and Bollinger Bands were 44% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 6,167.37 6,232.53 6,081.43
Volatility: 11 9 11
Volume: 531,925,568 586,925,568 562,123,648
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 0.3% above 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 22 periods.
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