Australia: S&P/ASX 200 (.AXJO) unable to take a positive lead from Brexit developments, late rally

Australia: S&P/ASX 200 (.AXJO) unable to take a positive lead from Brexit developments, late rally

Australia: S&P/ASX 200 (.AXJO) unable to take a positive lead from Brexit developments, late rally

Australian shares rallied late to end a four-day losing streak on Thursday as the market digested the latest Brexit vote results and Chinese economic data.

The S&P/ASX 200 Index rose 18.4 points, or 0.3 per cent, to 6179.6 while the broader All Ordinaries closed 20.8 points, or 0.3 per cent, higher at 6266.8.

The local sharemarket was unable to take a positive lead from Brexit developments on Thursday morning, as the vote to rule out a ‘no deal’ Brexit failed to give investors any certainty over the eventual deal. The market rallied late though to close firmly higher.

“The latest developments have not offered much clarity on the final outcome, so the effects on global markets are muted and the drama seems to be contained to currencies, and UK and European assets,” said Saxo Capital Markets strategist Eleanor Creagh. “From here a delay seems inevitable and the Brexit bedlam is set to continue.”

Major miners led the market gains as base metal and iron ore prices climbed. BHP Group rose 0.8 per cent to $37.16, Rio Tinto climbed 1 per cent to $91.77, South32 advanced 0.8 per cent to $3.85 and Fortescue Metals Group closed 0.5 per cent higher at $6.56.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 6,289.42.

The projected lower bound is: 6,094.66.

The projected closing price is: 6,192.04.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 31 white candles and 19 black candles for a net of 12 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 23.4970. This is not an overbought or oversold reading. The last signal was a buy 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 59.01. 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 4 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 4 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 4 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 18.400 at 6,179.600. Volume was 11% below average (neutral) and Bollinger Bands were 39% narrower than normal.

Open High Low Close Volume___
6,161.2006,181.5006,153.4006,179.600 555,183,104

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

Moving Averages: 10-period 50-period 200-period
Close: 6,201.85 5,993.61 6,018.36
Volatility: 9 10 14
Volume: 665,631,616 616,942,656 603,033,344

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 2.7% 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 47 periods.

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