Australia: S&P/ASX 200 (.AXJO) share market flat and one sector is keeping the bourse’s head above water

Australia: S&P/ASX 200 (.AXJO) share market flat and one sector is keeping the bourse’s head above water

Australia: S&P/ASX 200 (.AXJO) share market flat and one sector is keeping the bourse’s head above water

Energy and materials stocks are keeping the Australian share market flat at the open, with the financial sector keeping the bourse’s head above water.

The benchmark S&P/ASX200 index was up 7.1 points to 5882.3 at 1030 AEDT on Wednesday, while the broader All Ordinaries was up 4.1 points to 5962.8. The Australian dollar climbed to a five-day high in early trade, buying 72.36 US cents, up from 72.16 on Tuesday.

Mining shares ate away at Tuesday’s gains to drag on the market at Wednesday’s open, with BHP down 0.6 per cent to $33.35 and Rio Tinto down 0.65 per cent to $80.72.

Fortescue Metals slipped even further, losing 1.41 per cent to $4.19. Iluka Resources, and gold miners Evolution and Northern Star were rare bright spots, each posting modest early gains.

Local energy stocks matched a dip in global oil prices, with Caltex, Woodside Petroleum, Santos, Origin, and Oil Search Ltd each down between 0.16 and 1.1 per cent.

The banks were having a strong morning however, with the financials’ market- lifting charge led by Westpac with a 1.56 per cent gain to $27.34. The bank had earlier announced it would trim bonuses for senior staff, including a 30 per cent bonus cut for chief executive Brian Hartzer.

Big four competitors ANZ, Commonwealth, and NAB were up by between 1.18 and 1.34 per cent, while Macquarie Group rose 0.27 per cent.

Commonwealth Bank’s first-quarter unaudited cash profit fell 5.7 per cent to $2.5 billion, with higher funding costs and competition for borrowers putting pressure on margins.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 6,032.03.

The projected lower bound is: 5,743.56.

The projected closing price is: 5,887.79.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 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 83.0701. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 6 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 48.53. 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 6 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 69. This is not a topping or bottoming area. The last signal was a buy 6 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 4 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 21.700 at 5,896.900. Volume was 6% below average (neutral) and Bollinger Bands were 29% wider than normal.

Open High Low Close Volume___
5,875.2005,896.9005,844.6005,896.900 547,650,752

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

Moving Averages: 10-period 50-period 200-period
Close: 5,797.31 6,046.22 6,059.02
Volatility: 22 15 13
Volume: 647,499,776 605,926,656 582,719,936

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 2.7% below 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 44 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.

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