Australia: S&P/ASX 200 (.AXJO) shares continue slump

Australia: S&P/ASX 200 (.AXJO) shares continue slump

Australia: S&P/ASX 200 (.AXJO) shares continue slump

Australian shares are set to edge down as markets continue a pre-Christmas slump.

ASX futures were down 49 points to 5623 at 4.42am AEDT

Shares on Wall Street sank further at the start of the final full trading week of 2018. The Dow Jones fell 300 points in early trading before steadying. President Donald Trump criticised the Federal Reserve for its current series of interest-rate increases, days before the US central bank is expected to push up interest rates again. “It is incredible that with a very strong dollar and virtually no inflation, the outside world blowing up around us, Paris is burning and China way down, the Fed is even considering yet another interest rate hike. Take the Victory!” Trump wrote in a tweet.

Today’s Agenda

Local data: RBA board meeting minutes December; New Zealand ANZ business confidence December

Overseas data: Euro zone German IFO business climate December; UK GfK consumer confidence December; US total net TIC flows October; US building permits November

Overall, the bias in prices is: Downwards

The projected upper bound is: 5,826.87.

The projected lower bound is: 5,472.05.

The projected closing price is: 5,649.46.

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 26 white candles and 24 black candles for a net of 2 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 64.6373. 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 46.00. 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 34 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 -46. This is not a topping or bottoming area. The last signal was a buy 3 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 0 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 56.300 at 5,658.300. Volume was 4% below average (neutral) and Bollinger Bands were 27% narrower than normal.

Open High Low Close Volume___
5,602.0005,665.6005,585.1005,658.300 602,826,880

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

Moving Averages: 10-period 50-period 200-period
Close: 5,642.45 5,778.71 6,024.73
Volatility: 20 20 13
Volume: 659,056,960 643,569,664 587,453,376

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 6.1% 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 7 periods.

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