Australia: S&P/ASX 200 (.AXJO) set to rise after the announcement of a partial trade deal between China and the US
Australian shares are set to rise after the announcement of a partial trade deal between China and the US triggered a rally in markets.
The preliminary, partial deal was the biggest step toward resolving a 15-month tariff war between the world’s two largest economies.
“The main reason the market rallied the past couple of days was hope that there would be an agreement, even a small agreement, and that this trade war would be done for the foreseeable future,” said Michael O’Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut.
OANDA analyst Edward Moya said the partial deal could have far reaching ramifications for markets.
“US equities could resume the march toward uncharted territory if we see continued a de-escalation in all tariffs over the coming weeks,” he wrote in a note.
“Optimism is likely to remain in place and we could start to see the outflows from safe-havens help trigger a major emerging market rally. The bottom could be in place for the US dollar, but traders will still require more concrete progress in trade de-escalations.”
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 6,602.97.
The projected upper bound is: 6,781.36.
The projected lower bound is: 6,425.77.
The projected closing price is: 6,603.56.
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 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 58.4517. This is not an overbought or oversold reading. The last signal was a buy 3 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 48.79. 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 69 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 -36. This is not a topping or bottoming area. The last signal was a buy 3 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 9 period(s) ago.
Rex Takasugi – TD Profile
S&P/ASX 200 closed up 59.700 at 6,606.800. Volume was 20% below average (neutral) and Bollinger Bands were 2% 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: 6,593.87 6,592.66 6,360.66
Volatility: 19 17 13
Volume: 534,925,408 674,520,384 629,141,824
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 3.9% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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.