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

Australian shares appear set to edge higher at the open, despite rising concerns flagged by the OECD about global growth, the latest weak China economic data, a retreat in base metals and the pending UK parliamentary vote on Theresa May’s Brexit deal.

ASX futures were up 9 points at about 8.55am AEDT. The Australian dollar slipped below the US72¢ mark.

Shares on Wall Street ended lower with the Dow retreating 0.4 per cent and the S&P 500 slipping 0.5 per cent. The Nasdaq shed 0.9 per cent.

Today’s Agenda

No local data

Overseas data: UK Brexit vote; China retail sales December, industrial production December, fourth-quarter GDP; Euro zone trade balance November; US NY Empire manufacturing January, PPI December final

Overall, the bias in prices is: Sideways.

The projected upper bound is: 5,933.79.

The projected lower bound is: 5,610.73.

The projected closing price is: 5,772.26.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 25 white candles and 25 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 87.5941. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 8 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 58.30. 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 51 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 99. This is not a topping or bottoming area. The last signal was a sell 0 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 10 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed down -1.200 at 5,773.400. Volume was 39% below average (neutral) and Bollinger Bands were 16% wider than normal.

Open High Low Close Volume___
5,774.6005,801.5005,756.9005,773.400 374,051,968

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

Moving Averages: 10-period 50-period 200-period
Close: 5,698.42 5,702.80 6,002.30
Volatility: 16 18 14
Volume: 438,085,440 608,486,784 583,870,400

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 3.8% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 5 periods.

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