Home Investments Australia: S&P/ASX 200 (.AXJO) strong buying levels kept pushing prices higher

Australia: S&P/ASX 200 (.AXJO) strong buying levels kept pushing prices higher

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Australia: S&P/ASX 200 (.AXJO) strong buying levels kept pushing prices higher

The markets has closed at 6546.3 points, a one-day gain of 102.4 points or 1.6 per cent. The S&P/ASX 200 opened with a rise to 6500 and strong buying levels kept pushing prices higher all day. At the end of the day 165 companies are higher and of these 25 hit one-year highs today. Telstra reached $3.77, but closed at $3.75. Commonwealth Bank hit $81 and closed at $80.95, and Wesfarmers closed at a high of $38.56.

CSL accounts for 14.8 of the 102 points with a 4.3 per cent rise to $212.50. BHP added 9.5 points and Commonwealth Bank and Westpac Bank together added 10.3 points.

The biggest gain was a 9.4 per cent rise in nearmap to $3.50 and an 8.9 per cent rise in Vocus to $4.17. Costa Group gained 6.5 per cent, and Bravura Solutions gained 5.5 per cent.

The biggest losers today were Star Entertainment Group and AGL. Star lost 15.7 per cent to $3.80 after a profit warning, while AGL Energy fell 7.2 per cent to $19.40 after announcing it is the latest company to make a bid for Vocus.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 6,675.68.

The projected lower bound is: 6,433.33.

The projected closing price is: 6,554.51.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
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 32 white candles and 18 black candles for a net of 14 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 95.4769. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 2 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 65.94. 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 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 111.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 3 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 sell 7 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 102.400 at 6,546.300. Volume was 16% above average (neutral) and Bollinger Bands were 30% wider than normal.

Open High Low Close Volume___
6,443.9006,546.3006,443.9006,546.300 737,506,816

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 6,409.84 6,329.07 6,045.85
Volatility: 15 12 14
Volume: 676,807,936 594,686,208 619,809,088

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 8.3% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 0 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

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