Australia: S&P/ASX 200 (.AXJO) shares recorded their biggest monthly percentage gain since July 2016

Australia: S&P/ASX 200 (.AXJO) shares recorded their biggest monthly percentage gain since July 2016

Australia: S&P/ASX 200 (.AXJO) shares recorded their biggest monthly percentage gain since July 2016

Australian shares recorded their biggest monthly percentage gain since July 2016 in February, as positive earnings and a better-than-anticipated royal commission report boosted the local sharemarket.

The S&P/ASX 200 Index closed the month 304.4 points, or 5.2 per cent, higher at 6169 while the broader All Ordinaries rose 315.4 points, or 5.3 per cent, to 6252.7.

Chinese data

China’s manufacturing sector activity continued to slow in February as domestic holiday, a slowdown in global growth and the uncertainties surrounding the trade war with the United States weighed. The manufacturing purchasing managers index fell to 49.2, below the critical 50 point mark that signifies a contraction. New export orders fell to 45.2 from 46.9 in January, a sign that global demand in weakening. The non-manufacturing purchasing managers index also fell for the month, down to 54.3 from 54.7 in January. There are hopes a commodity rally, continued government stimulus and positive trade news could lift the index.

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 5,973.31.

The projected upper bound is: 6,302.48.

The projected lower bound is: 6,058.20.

The projected closing price is: 6,180.34.

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 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 58.9809. 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 69.15. 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 2 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 93. This is not a topping or bottoming area. The last signal was a sell 2 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 sell 2 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 18.700 at 6,169.000. Volume was 29% above average (neutral) and Bollinger Bands were 11% narrower than normal.

Open High Low Close Volume___
6,150.3006,173.1006,135.4006,169.000 805,906,368

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

Moving Averages: 10-period 50-period 200-period
Close: 6,129.98 5,868.27 6,009.92
Volatility: 8 14 14
Volume: 721,740,096 607,271,680 598,237,504

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 2.6% 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 37 periods.

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