Australia: S&P/ASX 200 (.AXJO) Set to Open Lower
The Australian sharemarket’s recovery on Tuesday was short lived, with the market fall on Wednesday weighed down by a number of index heavyweights.
The S&P/ASX 200 index closed 3.8 points, or 0.1 per cent lower at 6175.9, falling for the ninth time in the last ten sessions.
Many of the major insurers traded lower on Wednesday, as the banking royal commission into the financial services delves into the insurance industry. Suncorp Group fell 1.7 per cent to $14.52 and QBE Insurance closed 0.4 per cent lower at $10.93.
A fall in base metal prices in London on Tuesday pushed the local major mining stocks lower on Wednesday. BHP fell 0.3 per cent to $31.10, while Rio Tinto closed 0.4 per cent lower at $71.06.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 6,272.77.
The projected lower bound is: 6,078.73.
The projected closing price is: 6,175.75.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 1 white candles and 9 black candles for a net of 8 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.
A hammer occurred (a hammer has a long lower shadow and closes near the high). Hammers must appear after a significant decline or when prices are oversold (which appears to be the case with S&P/ASX 200) to be valid. When this occurs, it usually indicates the formation of a support level and is thus considered a bullish pattern.
A hanging man occurred (a hanging man has a very long lower shadow and a small real body). This pattern can be bullish or bearish, depending on the trend. If it occurs during an uptrend it is called a hanging man line and signifies a reversal top. If it occurs during a downtrend (which appears to be the case with S&P/ASX 200) it is called a bullish hammer.
A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 35.9317. This is not an overbought or oversold reading. The last signal was a buy 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 39.39. 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 sell 57 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 -82. This is not a topping or bottoming area. The last signal was a buy 0 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 5 period(s) ago.
Rex Takasugi – TD Profile
S&P/ASX 200 closed down -3.800 at 6,175.900. Volume was 0% below average (neutral) and Bollinger Bands were 40% wider 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: 6,230.72 6,263.17 6,066.39
Volatility: 9 10 11
Volume: 579,903,616 556,829,504 563,418,304
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 1.8% 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 4 periods.
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