Australia: S&P/ASX 200 (.AXJO) started the week in positive territory

Australia: S&P/ASX 200 (.AXJO) started the week in positive territory

Australia: S&P/ASX 200 (.AXJO) started the week in positive territory

The Australian share market started the week in positive territory, clawing back from early losses after most sectors entered positive territory and Utilities continued to shine

Mining stocks entered positive territory after the iron ore price lifted while Financial stocks remained underwater. Also capping gains today, were stocks including Afterpay (ASX:APT) which fell 6.5 per cent (before settlement) as the Labor party allegedly threatened the company with an inquiry. LendLease (ASX:LLC) also copped heavy selling for the second trading session, after being downgraded by Citi on the back of the $350 million after-tax write-down on the back of a further deterioration in engineering projects.

Meanwhile, Elders (ASX:ELD) mustered up 19.7 and Healthscope (ASX:HSO) rose 14 per cent.

At the closing bell the S&P/ASX 200 index closed 20 points higher, or 0.3 per cent higher, to finish at 5,941.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 6,079.20.

The projected lower bound is: 5,788.62.

The projected closing price is: 5,933.91.

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 25 white candles and 25 black 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 94.2826. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 9 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 52.88. 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 9 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 106.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 9 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 7 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 19.500 at 5,941.300. Volume was 1% above average (neutral) and Bollinger Bands were 38% wider than normal.

Open High Low Close Volume___
5,921.8005,941.3005,884.6005,941.300 587,791,232

Technical Outlook
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 5,870.69 6,022.40 6,057.24
Volatility: 9 16 13
Volume: 591,626,048 602,143,552 583,784,512

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 1.9% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 47 periods.

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