Australia: S&P/ASX 200 (.AXJO) to open lower

Australia: S&P/ASX 200 (.AXJO) to open lower

Australia: S&P/ASX 200 (.AXJO) to open lower

The Australian share market is expected to open lower this morning despite U.S. and European markets pushing higher. According to the latest SPI futures, the ASX 200 is poised to open the day 0.1% or 8 points lower. On Wall Street the Dow Jones rose 0.25%, the S&P 500 climbed 0.3%, and the Nasdaq pushed 0.2% higher.

Bank shares on watch.

Australia’s big four banks will be on watch this morning after they each responded to the Reserve Bank of Australia’s cash rate cut. Australia and New Zealand Banking Group Ltd (ASX: ANZ) has been the only bank to pass the rate on in full, whereas the rest of the banks have only passed on some of cut to customers.

Oil prices crash lower.

Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) shares could come under pressure this morning after oil prices crashed lower due to demand concerns. According to Bloomberg, the WTI crude oil price sank 4.5% to US$56.43 a barrel and the Brent crude oil price dropped 3.6% to US$62.72 a barrel.

Gold price higher.

Northern Star Resources Ltd (ASX: NST) and St Barbara Ltd (ASX: SBM) shares could be on the rise on Wednesday after the gold price rebounded strongly. According to CNBC, the spot gold price rose 2.1% to US$1,418.90 an ounce amid concerns over global growth and trade tensions.

Dividends being paid.

Eligible shareholders of Macquarie Group Ltd (ASX: MQG) and National Australia Bank Ltd (ASX: NAB) can look forward to being paid their latest dividends today. Macquarie is paying its shareholders a partially franked 360 cents per share dividend, whereas NAB is paying a fully franked 83 cents per share dividend to its shareholders.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 6,432.53.

The projected upper bound is: 6,814.78.

The projected lower bound is: 6,573.25.

The projected closing price is: 6,694.01.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 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 69.8713. This is not an overbought or oversold reading. The last signal was a sell 6 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 66.18. 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 8 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 81. This is not a topping or bottoming area. The last signal was a sell 7 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 2 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 32.300 at 6,685.500. Volume was 0% below average (neutral) and Bollinger Bands were 47% wider than normal.

Open High Low Close Volume___
6,653.2006,692.4006,641.7006,685.500 642,491,968

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

Moving Averages: 10-period 50-period 200-period

Close: 6,657.40 6,454.80 6,076.79

Volatility: 8 12 14

Volume: 736,168,768 641,734,144 628,035,648

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 10.0% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume into .AXJO (mildly bullish). Our trend forecasting oscillators are currently bullish on .AXJO and have had this outlook for the last 16 periods.

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