Australia: S&P/ASX 200 (.AXJO) stocks rebound to finish almost flat

Australia: S&P/ASX 200 (.AXJO) stocks rebound to finish almost flat

Australia: S&P/ASX 200 (.AXJO) stocks rebound to finish almost flat

The Australian stock exchange has bounced back from its early losses to finish the day nearly flat as the big banks dragged on the market.

After slipping as low as 25.8 points, the benchmark S&P-ASX 200 index closed Monday down just 5.1 points, or 0.07 per cent, at 7125.1.

The broader All Ordinaries index dropped 5.9 points, or 0.08 per cent, to 7221.2.

“It’s a bit of a rock and roll kind of day – after a week of strong gains we often get profit-taking.” said CMC Markets chief market strategist Michael McCarthy.

But Asian markets buoyed the local bourse as they opened up despite fears over the coronavirus, Mr McCarthy said.

The energy, tech and property sectors were all higher while telecom and financials were down.

Commonwealth Bank dropped 1.7 per cent to $89.46 following last week’s gains totalling 7.3 per cent.

Among the other big banks, ANZ dropped 0.1 per cent to $26.58 and NAB and Westpac both fell 0.3 per cent, to $27.28 and $25.62, respectively.

Elsewhere in the sector, Bendigo and Adelaide Bank was in a trading halt after launching a $300 million capital raising and slashing its interim dividend after its first-half profit slipped two per cent to $215 million.

Insurer QBE was up 4.3 per cent to $14.76 after lifting its half-year statutory profit 41 per cent to $818.8 million despite a surge in natural disaster costs.

Brambles gained 3.9 per cent to $13.14 after the pallet and crate company reported its half-year underlying profit was up five per cent to $647.7 million, while logistics provider Qube Holdings was down 3.7 per cent to $3.38.

In the heavyweight mining sector, BHP dropped 0.5 per cent to $38.47 and Fortescue Metals dropped 0.6 per cent to $10.92, while Rio Tinto gained 0.2 per cent to $97.84.

Goldminers were mixed, with Newcrest down 0.8 per cent, Northern Star up 2.2 per cent and Saracen Minerals gaining 1.9 per cent after announcing a 84 per cent rise in first-half profit.

Telstra dropped 1.3 per cento to $3.72, while Woolworths gained 0.3 per cent to $43.27.

In the tech sector, Afterpay and Xero were both close to their all-time highs, with Afterpay gaining 2.4 per cent to $39.52 and Xero up 1.7 per cent to $88.50.

The Australian dollar was trading at 67.29 US cents, down from 67.18 US on Friday as the market closed.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 7,275.45.

The projected lower bound is: 6,991.26.

The projected closing price is: 7,133.36.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 31 white candles and 19 black candles for a net of 12 white 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 82.8368. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 4 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 63.53. 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 16 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 131.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 8 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 -5.100 at 7,125.100. Volume was 12% below average (neutral) and Bollinger Bands were 18% narrower than normal.

Open     High      Low     Close     Volume___
7,130.2007,137.4007,104.4007,125.100 501,867,456
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 7,051.11 6,904.78 6,687.35
Volatility: 7 13 14
Volume: 641,323,904 556,131,840 617,034,112

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 6.5% 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 26 periods.

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