Australia: S&P/ASX 200 (.AXJO) Westpac Banking Corp weighing heavily on the heavyweight financials sector after regulators accused the bank of serious breaches of anti-money laundering rules
Australian shares fell on Wednesday, with second-biggest lender Westpac Banking Corp weighing heavily on the heavyweight financials sector after regulators accused the bank of serious breaches of anti-money laundering rules.
The S&P/ASX 200 index dropped 1.2%, or 83.3 points, to 6,732.10 by 0124 GMT. The benchmark rose 0.7% on Tuesday.
Australia’s financial crime regulator on Wednesday alleged that Westpac Banking Corp had breached laws on over 23 million instances and applied for civil penalties against the lender, sending its shares 2.5% to a more than six-month low.
“Twenty-three million counts of breaches is clearly a significant number… It is possible we will see substantial fines for Westpac in due course,” said Henry Jennings, senior analyst and portfolio manager at Marcustoday Financial Newsletter.
Financial stocks tumbled to a more than two-month low with the other “Big Four” banks also recording sizable declines.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 6,647.84.
The projected upper bound is: 6,857.88.
The projected lower bound is: 6,590.30.
The projected closing price is: 6,724.09.
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 32 white candles and 18 black candles for a net of 14 white candles.
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 65.9257. 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 50.91. 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 97 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 45. This is not a topping or bottoming area. The last signal was a sell 0 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 7 period(s) ago.
Rex Takasugi – TD Profile
S&P/ASX 200 closed down -91.800 at 6,722.400. Volume was 4% above average (neutral) and Bollinger Bands were 42% 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: 6,750.68 6,684.38 6,485.50
Volatility: 14 13 13
Volume: 595,831,424 612,008,000 637,664,640
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 3.7% 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 17 periods.