Australia: S&P/ASX 200 (.AXJO) tech sector leads to rise
The Australian share market has posted gains across the board after jobs figures from the US reassured traders that the world’s largest economy wasn’t on the brink of recession after all.
The benchmark S&P/ASX200 index closed Monday up 46.5 points, or 0.71 per cent, to 6,563.6 points, while the broader All Ordinaries was up 49.8 points, or 0.75 per cent, to 6,686.7 points.
“It’s been a pretty good start to the week,” said CommSec market analyst James Tao.
Last week was the ASX’s worst this year as it plunged along with global markets after disappointing US manufacturing data suggested the US economy was stalling, but US employment figures released on Friday showed US unemployment at a 50-year low.
“The fact the US economy looks as though it’ll keep its head above water for a little while longer has sparked a run back into equities,” IG markets analyst Kyle Rodda wrote.
While volumes were subdued with public holidays in NSW, Queensland, ACT and South Australia, every sector finished higher.
Tech stocks gained the most, by 1.4 per cent, with Wisetech Global rising 4.1 per cent to $34.86, Afterpay climbing 2.3 per cent to $34.92 and Xero gaining 1.3 per cent to $63.08.
The consumer staples, health care, telecom stocks and property trust sectors were all up between 1.3 and 1.0 per cent, while the other sectors gained more modestly.
In the heavyweight financial sector, all four big four banks were higher.
ANZ was up 0.5 per cent to $27.30, Commonwealth up 0.5 per cent to $77.94, NAB up 0.3 per cent to $27.92, and Westpac up 0.7 per cent to $28.61.
Macquarie Group fell 0.5 per cent to $125.81.
MyState was up 1.6 per cent to $4.60 after the Tasmania-based lender appointed Gary Dickson, formerly of ME Bank, as its interim chief financial officer.
In the mining sector, BHP was up 0.2 per cent to $35.38, Rio Tinto was down 0.1 per cent to $87.60, while Fortescue Metals rose 3.4 per cent to $8.91.
Resolute Mining climbed 1.1 per cent to $1.415 after announcing that it had produced 103,201 ounces of gold in the September quarter, up 32 per cent from the June quarter.
Nine Entertainment fell 0.8 per cent to $1.885 after it built its stake in Macquarie Media past 90 per cent, allowing it to bring the radio network under full ownership.
Eden Innovations rose 15.9 per cent to 5.1 cents after the Perth concrete additive company received its first order from a customer in the large New York City market.
Telstra was up 1.5 per cent to $3.47 and Vodafone Australia co-owner Hutchison rose 8.7 per cent to 12.5 cents
The Aussie dollar is buying 67.48 US cents, up from 67.54 US cents on Friday.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 6,733.56.
The projected lower bound is: 6,383.15.
The projected closing price is: 6,558.36.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white candles.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 18.3253. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 11 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 43.52. 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 65 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 -138.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 8 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 5 period(s) ago.
Rex Takasugi – TD Profile
S&P/ASX 200 closed up 46.500 at 6,563.600. Volume was 59% below average (consolidating) and Bollinger Bands were 11% narrower than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 6,649.75 6,611.09 6,339.51
Volatility: 18 17 13
Volume: 574,028,096 684,473,216 634,895,360
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.
S&P/ASX 200 is currently 3.5% above its 200-period moving average and is in an downward 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 moderate flows of volume into .AXJO (mildly bullish). Our trend forecasting oscillators are currently bearish on .AXJO and have had this outlook for the last 0 periods.