Australia: S&P/ASX 200 (.AXJO) shares are poised to dip after returning from a two-day Christmas break

Australia: S&P/ASX 200 (.AXJO) shares are poised to dip after returning from a two-day Christmas break

Australia: S&P/ASX 200 (.AXJO) shares are poised to dip after returning from a two-day Christmas break

Australian shares are poised to dip after returning from a two-day Christmas break, despite shares on Wall Street touching fresh record highs in overnight trade.

ASX futures are down 5 points, or 0.1 per cent, to 6710.

All three benchmark indices on Wall Street were set to close at record highs on Thursday, with optimism over the imminent signing of a US-China ‘phase one’ trade deal lifting investor optimism.

US President Donald Trump signalled earlier in the week that a deal was largely done and the two sides were now working towards holding a signing ceremony.

The US Labor Department also reported initial jobless claims decreased by 13,000 in the week ended December 21 to a seasonally adjusted 222,000, consistent with a healthy employment market.

Technical Indicators

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 6,698.25.

The projected upper bound is: 6,942.54.

The projected lower bound is: 6,651.55.

The projected closing price is: 6,797.04.

Candlesticks

A white body occurred (because prices closed higher 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 30 white candles and 20 black candles for a net of 10 white 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 29.3819. This is not an overbought or oversold reading. The last signal was a sell 2 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 52.74. 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 121 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 24. This is not a topping or bottoming area. The last signal was a buy 12 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 6 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 9.100 at 6,794.200. Volume was 68% below average (consolidating) and Bollinger Bands were 8% wider than normal.

Open     High      Low     Close     Volume___
6,785.1006,794.9006,776.2006,794.200 201,839,216
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 6,797.82 6,740.18 6,560.38
Volatility: 12 14 13
Volume: 618,709,120 603,126,528 628,521,152

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 3.6% above its 200-period moving average and is in an upward 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 bullish on .AXJO and have had this outlook for the last 5 periods.

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