S&P/ASX 200 (INDEXASX:XJO) HEFFX Trading Outlook

S&P/ASX 200 (INDEXASX:XJO) HEFFX Trading Outlook

S&P/ASX 200 (INDEXASX:XJO) HEFFX Trading Outlook

Overall, the bias in prices is: Upwards.

Short term: Prices are moving.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 5,518.51.

The projected upper bound is: 5,908.71.

The projected lower bound is: 5,627.24.

The projected closing price is: 5,767.98.

S&P/ASX 200 closed up 8.250 at 5,761.600. Volume was 78% below average (consolidating) and Bollinger Bands were 11% wider than normal.

Open            High            Low             Close             Volume
5,753.300   5,765.200   5,750.100   5,761.600    135,452,976

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period         50-period         200-period
Close:                       5,691.98           5,460.84          5,368.84
Volatility:                10                       17                       16
Volume:                  386,203,936    630,934,656    606,083,008

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
S&P/ASX 200 is currently 7.3% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume into .AXJO (mildly bullish). Our trend forecasting oscillators are currently bullish on .AXJO and have had this outlook for the last 29 periods. Our momentum oscillator is currently indicating that .AXJO is currently in an overbought condition.

Australia, ASX, S&P, 200, XJO, HEFFX, Trading, Outlook, Shayne, Heffernan

HEFFX Momentum S&P/ASX 200
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 95.2054. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 13 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 71.92. This is where it usually tops. 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 4 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 115.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 13 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 18 period(s) ago.

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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