Australia: S&P/ASX 200 (.AXJO) shares set for soft open ahead of China data

Australia: S&P/ASX 200 (.AXJO) shares set for soft open ahead of China data

Australia: S&P/ASX 200 (.AXJO) shares set for soft open ahead of China data

Australian shares are expected to open slightly lower on Friday, as investors will likely exercise caution ahead of growth data from the country’s biggest trade partner, China.

Mining heavyweights such as BHP Group and Rio Tinto are likely to be pressured due to tumbling iron ore prices.

The local share price index futures fell 0.2% or 13 points, a 33.7-point discount to the underlying S&P/ASX 200 index close. The benchmark skidded 0.8% on Thursday to snap a five-session rally.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 6,845.90.

The projected lower bound is: 6,528.16.

The projected closing price is: 6,687.03.

Candlesticks

A black body occurred (because prices closed lower 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 32 white candles and 18 black candles for a net of 14 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 85.8405. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 7 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 54.53. 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 73 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 83. This is not a topping or bottoming area. The last signal was a buy 7 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 2 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed down -51.800 at 6,684.700. Volume was 40% above average (neutral) and Bollinger Bands were 2% wider than normal.

Open     High      Low     Close     Volume___
6,736.5006,737.4006,681.4006,684.700 921,001,216
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 6,609.05 6,602.86 6,381.78
Volatility: 12 15 13
Volume: 534,532,256 669,120,448 634,680,256

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 4.7% above 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 8 periods.

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