Australia: S&P/ASX 200 (.AXJO) shares to start in positive mood
Australian shares can expect to get off to a positive start to the week after two major uncertainties that have been undermining the global economy finally are lifted.
Heading into the week, phase one of the hotly disputed trade negotiations between the US and China appear to have been settled, suspending $US160 billion ($A233 billion) of damaging tariffs on Chinese goods that were due to have started on December 15.
At the same time, UK Prime Minister Boris Johnson was swept back to power in Thursday’s British election with a thumping majority, suggesting the country will finally be leaving the European Union on January 31 after years of political wrangling.
“Markets have the potential for a Santa Claus rally into Christmas with those two tail risks receding,” Commonwealth Securities senior economist Ryan Felsman told AAP on Sunday.
He said the fact that the tariffs are suspended, “will provide some positive momentum going into Monday’s trading here in Australia”.
US shares hit record highs at one stage on Friday on the announcement of the US-China trade deal before finishing steady.
The Dow Jones Industrial Average rose 3.33 points, or 0.01 per cent, to 28,135.38, the S&P 500 gained 0.23 point, or 0.01 per cent, to 3,168.8 and the Nasdaq Composite added 17.56 points, or 0.2 per cent, to 8,734.88.
Australian share futures were trading 39 points higher at 6782.
The benchmark S&P/ASX200 index closed on Friday up 30.9 points, or 0.46 per cent, to 6,739.7 points, while the broader All Ordinaries was up 33.8 points, or 0.5 per cent, to 6,844.6 points.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 6,887.01.
The projected lower bound is: 6,601.29.
The projected closing price is: 6,744.15.
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 33 white candles and 17 black candles for a net of 16 white candles.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 78.6032. This is not an overbought or oversold reading. The last signal was a buy 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 50.69. 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 114 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 -24. This is not a topping or bottoming area. The last signal was a buy 5 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 7 period(s) ago.
Rex Takasugi – TD Profile
S&P/ASX 200 closed up 30.900 at 6,739.700. Volume was 2% above average (neutral) and Bollinger Bands were 6% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 6,720.91 6,707.68 6,538.64
Volatility: 19 14 13
Volume: 591,851,840 584,174,144 631,210,560
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.
S&P/ASX 200 is currently 3.1% 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 7 periods.
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