Australia: S&P/ASX 200 (.AXJO) Wild day ends flat

Australia: S&P/ASX 200 (.AXJO) Wild day ends flat

Australia: S&P/ASX 200 (.AXJO) Wild day ends flat

Australian shares endured a wild ride on Thursday, gyrating throughout the session as a swathe of conflicting headlines relating to trade talks between the United States and China saw sentiment change in the blink of an eye.

After three trips into negative territory and two ventures into the black, the benchmark S&P/ASX 200 index eventually finished the session flat, inching up 0.01 per cent, or 0.4 points, to close at 6547.1.

Mirroring the broader price action during the session, the performance by individual sectors was mixed.

REITs fell 0.6 per cent, outpacing declines of 0.5 per cent for energy, 0.4 per cent for resources and 0.3 per cent apiece for utilities and information technology. Gold miners were also pressured with the S&P/All Ords gold index sliding 0.9 per cent.

Those losses were offset by a 0.5 per cent bounce in consumer staples, recovering from heavy falls on Wednesday sparked by a weak Australian consumer sentiment report for October. Healthcare added 0.3 per cent while industrials and telecommunications both gained 0.2 per cent.

After sitting lower for most of the session, a late flurry of buying in financials saw it close up less than 0.1 per cent, helping the benchmark index finish flat.

By individual stock, packaging company Orora soared 13.9 per cent to $3.11 after announcing an asset sale to the market before the start of trade. Biotech firm Polynovo also enjoyed a strong day, jumping 11.9 per cent to $2.54.

After jumping by 60 per cent on Wednesday, shares in biopharmaceutical firm Clinuvel Pharma succumbed to profit-taking, sliding 14.8 per cent to close at $38.36. Gold miner Resolute Mining slumped 11.2 per cent to $1.265 following an unexpected production outage while shares in retailer Harvey Norman slid 5 per cent to $4.18 after going ex-dividend.

Technical Indicators

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 6,602.92.

The projected upper bound is: 6,718.13.

The projected lower bound is: 6,366.40.

The projected closing price is: 6,542.26.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 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 45.3793. This is not an overbought or oversold reading. The last signal was a buy 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 42.76. 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 68 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 -77. This is not a topping or bottoming area. The last signal was a buy 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 8 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 0.400 at 6,547.100. Volume was 17% below average (neutral) and Bollinger Bands were 1% wider than normal.

Open     High      Low     Close     Volume___
6,546.7006,570.9006,529.3006,547.100 549,842,240
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 6,604.80 6,595.90 6,355.61
Volatility: 19 17 13
Volume: 542,861,248 676,172,608 628,802,176

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 3.0% above its 200-period moving average and is in an downward 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 bearish on .AXJO and have had this outlook for the last 3 periods.

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