Australia: S&P/ASX 200 (.AXJO) up over 18% this year, set for its best run since 2009

Australia: S&P/ASX 200 (.AXJO) up over 18% this year, set for its best run since 2009

Australia: S&P/ASX 200 (.AXJO) up over 18% this year, set for its best run since 2009

It’s among the top stock markets in the world this year and inching closer to an all-time high.

Australia’s benchmark S&P/ASX 200 Index has surged over 18% this year, adding about $210 billion in value despite a sluggish economy and a housing slump. Investor concerns eased after a federal election and the Royal Commission’s inquiry into the financial sector stopped short of demanding a structural overhaul in the sector.

Still, analysts have been divided on where Aussie stocks will go after this year’s rally with Citigroup Inc. and Morgan Stanley Wealth Management cheering the surge, and Goldman Sachs Group Inc. taking the other side of the trade and downgrading the market to underweight.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 6,452.16.

The projected upper bound is: 6,818.36.

The projected lower bound is: 6,575.81.

The projected closing price is: 6,697.09.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white 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 26.8541. This is not an overbought or oversold reading. The last signal was a sell 2 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 60.77. 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 2 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 58. This is not a topping or bottoming area. The last signal was a sell 2 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 24.100 at 6,689.800. Volume was 0% below average (neutral) and Bollinger Bands were 12% narrower than normal.

Open High Low Close Volume___
6,665.7006,718.2006,665.7006,689.800 631,141,888

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

Moving Averages: 10-period     50-period     200-period
Close: 6,676.89 6,489.29 6,089.77
Volatility: 11 12 14
Volume: 601,436,992 640,776,896 623,527,296

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 9.9% above its 200-period moving average and is in an upward trend. Volatility is low 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 bullish on .AXJO and have had this outlook for the last 21 periods.

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