Australia: S&P/ASX 200 (.AXJO) Set to Open Higher

Australia: S&P/ASX 200 (.AXJO) Set to Open Higher

Australia: S&P/ASX 200 (.AXJO) Set to Open Higher

Many markets, many stories: We are getting to the dense end of the week now, and the picture markets is certainly beginning to show it.

Things were looking quite rosy yesterday morning as Australian traders dusted off their keyboards to get to work: Apple reported and eased the tech-wreck fears that had weighed on Wall Street, while news broke that the US and China were preparing to revisit trade-war negotiations.

Although an air of positivity kept markets in tact throughout the day, markets were once again blindsided by news that US President Trump may be considering upping tariffs on Chinese imports into the US from 10 per cent to 25 per cent. Though the news took time to corrode through the markets skin, commodities prices tumbled on the back of the news, and slowly consumed equity markets as the day unfolded.

“As was widely expected, overnight the U.S. Federal Reserve elected to keep rates on hold in the 1.75% to 2% range. But the market continues to expect two further rate hikes this year, with one in September and the other in December”, said Shayne Heffernan, CEO of Heffx.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 6,339.87.

The projected lower bound is: 6,150.26.

The projected closing price is: 6,245.07.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 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 53.5446. This is not an overbought or oversold reading. The last signal was a sell 1 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 51.33. 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 28 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 -19. 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 sell 13 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed down -34.800 at 6,240.900. Volume was 2% below average (neutral) and Bollinger Bands were 60% narrower than normal.

Open High Low Close Volume___
6,275.7006,277.5006,240.9006,240.900 543,709,184

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

Moving Averages: 10-period 50-period 200-period
Close: 6,264.68 6,164.33 6,020.07
Volatility: 10 10 10
Volume: 532,284,352 558,551,424 552,557,504

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 3.7% 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 0 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.

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