Australia: S&P/ASX 200 (.AXJO) Virus fears blamed as the spread of the deadly coronavirus causes mass panic
The Australian ASX has plunged over 2.6 per cent at opening this morning following Monday’s bloodbath.
Shortly after midday the S & P/ASX 200 was down 1.3 per cent after earlier falling 2.6 per cent to a seven-week low of 6800.
This meant that the ASX has shed $26 billion in value after yesterday’s lose of $48 billion.
The biggest losers so far have been those exposed to travel and tourism, such as Webjet which is down 7 per cent and Flight Centre which is down 2.4 per cent.
The broader All Ordinaries index was down 1661.1 points of 2.35 per cent following the Dow Jones fall on Monday.
The All Ordinaries index had around $51 billion wiped off in value after yesterday’s fall.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 6,946.65.
The projected upper bound is: 7,024.65.
The projected lower bound is: 6,713.11.
The projected closing price is: 6,868.88.
A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white candles.
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 16.3984. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 3 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 36.39. 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 22 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 -212.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 2 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 1 period(s) ago.
Rex Takasugi – TD Profile
S&P/ASX 200 closed down -111.700 at 6,866.600. Volume was 74% above average (neutral) and Bollinger Bands were 13% wider than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 7,085.14 6,949.15 6,710.83
Volatility: 17 14 14
Volume: 787,465,984 592,221,824 626,601,024
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.
S&P/ASX 200 is currently 2.3% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 32 periods.