Australia: S&P/ASX 200 (.AXJO) vulnerable to a correction towards 6,163.55

Australia: S&P/ASX 200 (.AXJO) vulnerable to a correction towards 6,163.55

Australia: S&P/ASX 200 (.AXJO) vulnerable to a correction towards 6,163.55

Australian shares are poised to open lower, amid mixed trading on Wall Street. ASX futures were down 3 points at 6.45am AEST, paring earlier losses. The Australian dollar extended its rally, rising another 0.7 per cent.

On Wall Street, shares in Goldman Sachs and JPMorgan paced the Dow Jones Industrial Average higher. The Dow closed 211 points from the record high it reached in late January. Banks rallied as the yields on US Treasuries edged higher. The US 10-year yield ended at 3.06 per cent, with the gap between its Australian counterpart at 35 basis points in recent trading.

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 6,163.55.

The projected upper bound is: 6,284.90.

The projected lower bound is: 6,094.08.

The projected closing price is: 6,189.49.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black 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 77.1963. This is not an overbought or oversold reading. The last signal was a buy 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 45.49. 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 62 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 -21. This is not a topping or bottoming area. The last signal was a buy 5 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 10 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 28.500 at 6,190.000. Volume was 22% above average (neutral) and Bollinger Bands were 51% wider than normal.

Open High Low Close Volume___
6,161.5006,197.5006,161.5006,190.000 693,364,992

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

Moving Averages: 10-period 50-period 200-period
Close: 6,163.20 6,254.83 6,070.83
Volatility: 11 10 11
Volume: 567,095,616 565,468,928 562,562,048

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 2.0% above its 200-period moving average and is in an downward trend. Volatility is high 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 bearish on .AXJO and have had this outlook for the last 9 periods.

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