Australia: S&P/ASX 200 (.AXJO) worst performance in eight months
The benchmark ASX 200 index closed down 2.7 per cent at 5,883, while the All Ordinaries index slumped 170 points to close below 6,000 points for the first time in more than half a year, at 5,993.
It is the worst one-day fall since the market slumped 3.2 per cent during the “bondcano” in February this year, when fears of rising US interest rates sparked an intense two-day sell off.
Among the hardest-hit big-name Australian stocks were BHP (-3.8 per cent), Woodside Petroleum (-3.6 per cent), Rio Tinto (-3.2 per cent) and Qantas (-3.8 per cent).
The big four banks also continued to slide sharply: ANZ (-3.2 per cent), NAB (-2.6 per cent), Westpac (-2.6 per cent) and the Commonwealth Bank (-2.9 per cent).
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 6,140.47.
The projected upper bound is: 5,993.35.
The projected lower bound is: 5,759.97.
The projected closing price is: 5,876.66.
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 22 white candles and 28 black candles for a net of 6 black 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 5.2623. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 5 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 23.50. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 78 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 -241.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 5 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 3 period(s) ago.
Rex Takasugi – TD Profile
S&P/ASX 200 closed down -166.000 at 5,883.800. Volume was 48% above average (neutral) and Bollinger Bands were 62% wider than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 6,108.90 6,216.09 6,080.31
Volatility: 19 12 12
Volume: 561,161,984 595,741,824 564,181,760
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 3.2% below 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 25 periods. Our momentum oscillator is currently indicating that .AXJO is currently in an oversold condition.