Australia: S&P/ASX 200 (.AXJO) taken a hit after fears of a slowdown in global growth

Australia: S&P/ASX 200 (.AXJO) taken a hit after fears of a slowdown in global growth

Australia: S&P/ASX 200 (.AXJO) taken a hit after fears of a slowdown in global growth

Australia’s stock market has taken a hit after fears of a slowdown in global growth and demand slashed the price of big-name US technology stocks.

The benchmark S&P/ASX 200 index had fallen by more than 100 points or 1.8 per cent at close of trading on Tuesday afternoon, equivalent to more than $30 billion being wiped off the top 200 companies.

The falls were led by information technology stocks, which were down around 2.6 per cent against the rest of the market.

Multinational mining services, fertiliser, and explosives chemicals manufacturer Incitec Pivot was the worst performing of the top 100 companies on the ASX.

Shares in the company crashed by more than 7.5 per cent on Tuesday following the announcement that its full-year profit had fallen 34.8 per cent to $207.9 million.

Incitec Pivot, which paid a partly franked final dividend of 6.2 cents, did not provide profit guidance for FY19. However, it said dry conditions in NSW and Queensland could hit irrigation water availability in key summer crop markets.

Shortly before midday on Tuesday, Incitec Pivot shares were 32.5 cents, or 7.7 per cent, lower at $3.905

Overall, the bias in prices is: Downwards.

The projected upper bound is: 5,976.18.

The projected lower bound is: 5,673.86.

The projected closing price is: 5,825.02.

Candlesticks

A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
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 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 66.2476. This is not an overbought or oversold reading. The last signal was a sell 0 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 42.71. 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 10 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 43. This is not a topping or bottoming area. The last signal was a sell 0 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 8 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed down -107.100 at 5,834.200. Volume was 12% above average (neutral) and Bollinger Bands were 37% wider than normal.

Open High Low Close Volume___
5,941.3005,941.3005,824.4005,834.200 656,722,752

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

Moving Averages: 10-period 50-period 200-period
Close: 5,873.60 6,013.22 6,056.22
Volatility: 14 16 13
Volume: 591,269,632 605,586,368 583,675,136

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 3.7% 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 48 periods.

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