Australia: S&P/ASX 200 (.AXJO) shares fall as profit results pour in

Australia: S&P/ASX 200 (.AXJO) shares fall as profit results pour in

Australia: S&P/ASX 200 (.AXJO) shares fall as profit results pour in

The Australian share market has finished marginally lower for a second day as investors digest local profit results in the absence of strong offshore leads.

The benchmark S&P/ASX200 index closed Tuesday down 11.4 points, or 0.16 per cent, at 7,113.7, while the broader All Ordinaries index dropped 12.9 points, or 0.18 per cent, to 7,208.3.

“A pretty similar story to what we saw yesterday,” said CommSec market analyst James Tao.

“The fact that the US was on holiday (for Presidents’ Day) meant our market lacked a little direction.”

The day was weighted to larger companies, with the ASX20 list of Australia’s biggest 20 companies gaining 0.1 per cent and the small-cap Small Ordinaries index dropping 0.6 per cent.

Australia’s largest company, global miner BHP, gained 0.8 per cent to $38.78 after raising its dividend and announcing its first-half profit rose 29 per cent to $7.25 billion.

Cochlear was down 3.4 per cent to $226.62 after underwhelming investors with a stable first-half profit of $132.7 million following weaker sales of its bone-anchored hearing aids ahead of a new product.

Glove maker Ansell was down 2.9 per cent to $31.42 after its interim profit of $US65.8 million ($A98 million) similarly failed to meet analyst expectations.

Coles dropped 1.0 per cent to $16.75 after the supermarket giant said it expected to take a $20 million hit repaying underpaid managers.

Rio Tinto gained 0.5 per cent to $98.31 despite announcing that Cycle Damien had disrupted its iron ore operations in the Pilbara, Western Australia.

Infant formula manufacturer Bubs gained 13.6 per cent after expanding its supply agreement with Woolworths.

Juice company Food Revolution soared 62.4 per cent to 9.2 cents after announced it would begin producing hand sanitiser – in high demand because of the coronavirus – at its newly upgraded plant in Melbourne.

Kogan dropped 3.5 per cent to $4.98 after the online retailer’s revenue dipped 5.3 per cent to $219.5 million.

The Australian dollar was buying 66.91 US cents, down from 67.29 US cents as the market closed on Monday.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 7,257.59.

The projected lower bound is: 6,990.10.

The projected closing price is: 7,123.84.

Candlesticks

A black body occurred (because prices closed lower 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 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 82.3350. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 5 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 61.91. 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 17 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 94. This is not a topping or bottoming area. The last signal was a sell 0 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 3 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed down -11.400 at 7,113.700. Volume was 9% above average (neutral) and Bollinger Bands were 16% narrower than normal.

Open     High      Low     Close     Volume___
7,125.1007,125.1007,096.8007,113.700 627,529,408
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 7,067.61 6,914.92 6,691.44
Volatility: 8 12 14
Volume: 644,141,056 553,084,416 617,616,576

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 6.3% above its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 27 periods.

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