Australia: S&P/ASX 200 (.AXJO) slips as market struggles to ‘find confidence’ amid coronavirus

Australia: S&P/ASX 200 (.AXJO) slips as market struggles to ‘find confidence’ amid coronavirus

Australia: S&P/ASX 200 (.AXJO) slips as market struggles to ‘find confidence’ amid coronavirus

Australian shares have experienced a lacklustre start to the day, its first session back from the Easter long weekend.

The ASX 200 index had fallen by 0.4 per cent to 5,365 points by 10:25am AEST.

Many of the best-performing stocks were gold miners after the precious metal’s spot price climbed to a seven-year high of $US1,718 ($2,685) an ounce.

Shares in Northern Star Resources, St Barbara and Saracen Mineral Holdings have jumped between 8.1 and 9.3 per cent.

On the flip side, commercial property owners Scentre Group and Vicinity Centres were among the worst-performing stocks, down between 4 and 6 per cent.

The Australian dollar has lifted to 63.94 US cents.

Market recovery will be a ‘very long slog’

The local bourse is following a downbeat lead from US markets.

Wall Street ended its first day back from Easter with mixed results on Monday (local time) as the number of COVID-19 infections and deaths continue to rise in the United States.

America’s big banks will unveil their first-quarter results this week, and it is expected to be a painful start to the earnings season due to the pandemic, particularly given the widespread business lockdowns and a surge in unemployment.

The tech-heavy Nasdaq lifted by 0.5 per cent, while the benchmark S&P 500 fell by 1 per cent.

The Dow Jones Industrial Average dropped 329 points, or 1.4 per cent, to 23,391.

“The market wants to find confidence in some of the recent developments, but I still think it’s going to be a very long slog,” said Gennadiy Goldberg, senior rates strategist at TD Securities in New York.

European markets were closed.

Oil markets were mixed with Brent crude rising 1.1 per cent to $US31.83 a barrel.

However, West Texas crude dropped 1.5 per cent to $US22.42 a barrel.

The fall was despite OPEC and the world’s major oil producing nations agreeing on Sunday to cut oil production by a record 9.7 million barrels per day.

Technical Indicators

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 5,940.44.

The projected lower bound is: 4,833.43.

The projected closing price is: 5,386.93.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 77.4149. This is not an overbought or oversold reading. The last signal was a buy 13 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 49.87. 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 buy 12 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 137.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. 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 buy 11 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 31.600 at 5,418.900. Volume was 68% below average (consolidating) and Bollinger Bands were 7% wider than normal.

Open     High      Low     Close     Volume___
5,387.3005,429.7005,360.0005,418.900 277,416,736
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 5,229.08 6,021.10 6,543.97
Volatility: 57 66 36
Volume: 1,008,914,752 1,124,538,496 734,511,872

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 17.2% below 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 32 periods.

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