Australia: S&P/ASX 200 (.AXJO) tipped to follow Wall St higher

Australia: S&P/ASX 200 (.AXJO) tipped to follow Wall St higher

Australia: S&P/ASX 200 (.AXJO) tipped to follow Wall St higher

The Australian sharemarket is set for an early rise after US stocks were buoyed by hopes the coronavirus outbreak has reached a peak.

The SPI200 futures contract was up 70 points, or 1.35 per cent, at 5,248.0 points at 0800 AEST on Thursday, suggesting local stocks will rise after back-to-back sessions in the red.

It will be the final session before a four-day Easter break.

The major US indices jumped overnight after President Donald Trump and New York Governor Andrew Cuomo each expressed hopes Americans might be getting to the top of the coronavirus curve.

Health insurers received an additional lift from Bernie Sanders’ decision to suspend his presidential campaign.

The Dow Jones Industrial Average rose 3.44 per cent, the S&P 500 gained 3.41 per cent, and the Nasdaq added 2.58 per cent.

The S&P/ASX200 benchmark index looked set to close flat on Wednesday despite weakness in the financial sector but lost 38.8 points in the final minute of trade as the Eurozone failed to pass a stimulus measure after 16 hours of talks.

The Australian dollar was buying 62.35 US cents at 0800 AEST, up from 61.32 US cents at the close of markets on Wednesday.

The Reserve Bank is scheduled to release its biannual Financial Stability Review at 1130 AEST.

Technical Indicators

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

The projected upper bound is: 5,780.81.

The projected lower bound is: 4,686.59.

The projected closing price is: 5,233.70.

Candlesticks

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 23 white candles and 27 black candles for a net of 4 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 54.9455. This is not an overbought or oversold reading. The last signal was a buy 12 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 46.37. 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 11 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 84. This is not a topping or bottoming area. The last signal was a sell 1 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 10 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 61.600 at 5,268.500. Volume was 82% below average (consolidating) and Bollinger Bands were 10% wider than normal.

Open     High      Low     Close     Volume___
5,206.9005,320.1005,206.9005,268.500 155,985,184
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 5,159.55 6,050.69 6,549.53
Volatility: 66 65 35
Volume: 1,051,037,184 1,118,953,856 732,111,936

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 19.6% 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 31 periods.

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