Australia: S&P/ASX 200 (.AXJO) Waiting for RBA policy meeting
Current account second quarter, RBA policy meeting and cash rate decision, RBA governor Lowe speaks at a board dinner in Perth
Capital Economics on pending GDP data: “The data on Australian business inventories and mining exploration mean that the risks to our forecast that GDP rose by 0.5% q/q in the second quarter are on the upside. A 0.7% q/q gain now looks possible (data are due on Wednesday). That said, the stagnation in retail sales values in July suggests that consumption may have lost some momentum at the start of the third quarter.”
Overseas data: UK construction PMI August; US construction spending July, Markit manufacturing PMI August, ISM manufacturing August.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 6,402.14.
The projected lower bound is: 6,223.68.
The projected closing price is: 6,312.91.
A black body occurred (because prices closed lower 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 24 white candles and 26 black candles for a net of 2 black 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 64.5202. This is not an overbought or oversold reading. The last signal was a sell 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 54.01. 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 50 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 29. This is not a topping or bottoming area. The last signal was a sell 1 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 buy 2 period(s) ago.
Rex Takasugi – TD Profile
S&P/ASX 200 closed down -8.600 at 6,310.900. Volume was 18% below average (neutral) and Bollinger Bands were 32% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 6,295.01 6,264.17 6,058.59
Volatility: 9 9 11
Volume: 681,833,024 557,086,272 561,207,808
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 4.2% 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 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 2 periods.