Australia: S&P/ASX 200 (.AXJO) shares managed to extend a September advance with banks and miners performing

Australia: S&P/ASX 200 (.AXJO) shares managed to extend a September advance with banks and miners performing

Australia: S&P/ASX 200 (.AXJO) shares managed to extend a September advance with banks and miners performing

Australian shares managed to extend a September advance with banks and miners performing well, as one strategist suggested concerns about a global economic downturn were  “overblown.”

The S&P/ASX 200 index climbed 23 points, or 0.4 per cent, to 6638, with almost 20 points of the advance made in the final minutes of trading. The market is trading near a one-month high, shaking off August’s poor performance.

“Central banks have acted in a coordinated fashion this year and that has helped sentiment around asset prices,” said Anthony Doyle, investment specialist at Fidelity International.

“We are a bit more bullish on the economy than consensus,” he said. “We think that global activity will accelerate and that fears of a global recession are overblown.”

He expects the Australian economy to receive a boost from interest rate cuts from the Reserve Bank of Australia and added “equities could be on a bit of a run.”

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 6,801.29.

The projected lower bound is: 6,472.81.

The projected closing price is: 6,637.05.

Candlesticks

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 28 white candles and 22 black candles for a net of 6 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 81.2038. 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 55.61. 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 47 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 85. This is not a topping or bottoming area. The last signal was a sell 1 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 10 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 23.900 at 6,638.000. Volume was 24% above average (neutral) and Bollinger Bands were 5% narrower than normal.

Open     High      Low     Close     Volume___
6,614.1006,638.4006,614.1006,638.000 811,433,984
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 6,597.80 6,626.81 6,248.74
Volatility: 11 16 14
Volume: 693,495,616 647,250,880 636,639,616

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 6.2% 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 moderate flows of volume into .AXJO (mildly bullish). Our trend forecasting oscillators are currently bullish on .AXJO and have had this outlook for the last 3 periods.

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