Australia: S&P/ASX 200 (.AXJO) trade war worries left investors trading defensively

Australia: S&P/ASX 200 (.AXJO) trade war worries left investors trading defensively

Australia: S&P/ASX 200 (.AXJO) trade war worries left investors trading defensively

Australian shares closed lower on Wednesday as trade war worries left investors trading defensively.

The S&P/ASX 200 Index fell 22.5 points, or 0.4 per cent, to 6165.3, while the broader All Ordinaries slid 24.8 points, or 0.4 per cent, to 6251.8.

An air of caution descended over the market on Wednesday, as conflicting reports regarding the US-China trade talks put investors on the back foot.

CONFLICTING REPORTS

US equity markets were mixed on Tuesday amid conflicting reports surrounding the country’s trade negotiations with China. After taking a positive lead from Europe, US shares fell following a report from Bloomberg that noted some US negotiators had become concerned over China’s tactics against US demands.

The article said China was resisting changes to their data protection and intellectual property policies because they had not received assurances from the US that export tariffs would be withdrawn. The US market recovered though as other reports suggested some US officials weren’t concerned, saying it was normal in these sorts of negotiations.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 6,264.80.

The projected lower bound is: 6,083.52.

The projected closing price is: 6,174.16.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 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 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 58.2858. This is not an overbought or oversold reading. The last signal was a buy 4 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 55.37. 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 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 -86. This is not a topping or bottoming area. The last signal was a sell 8 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 8 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed down -19.500 at 6,165.300. Volume was 15% above average (neutral) and Bollinger Bands were 61% narrower than normal.

Open High Low Close Volume___
6,184.8006,185.5006,155.2006,165.300 731,819,776

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

Moving Averages: 10-period 50-period 200-period
Close: 6,187.93 6,034.76 6,021.75
Volatility: 7 10 14
Volume: 680,463,872 638,836,416 607,306,816

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 2.4% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. 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 51 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.

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