Wall Street rally to buoy Australia: S&P/ASX 200 (.AXJO) shares

Wall Street rally to buoy Australia: S&P/ASX 200 (.AXJO) shares

Wall Street rally to buoy Australia: S&P/ASX 200 (.AXJO) shares

Australian shares are tipped to open in the positive ahead of Christmas, buoyed by a rally on international markets.

The S&P 500 – the main benchmark in the US – closed on Friday up about 15.8 points or 0.5 per cent, and the Dow Jones closed up 78.1 points or 0.3 per cent.

Australian stocks had a softer end to last week. The benchmark S&P/ASX200 index finished on Friday 16.8 points, or 0.25 per cent lower, at 6,816.3 points. The broader All Ordinaries slipped 16.5 points, or 0.24 per cent, to 6,926.1 points.

ASX SPI Futures Index on Friday was pointing to a soft open, with shares drifting down 0.4 per cent to 6,276, though that was before the Wall Street rally on Friday night. The Aussie dollar is expected to stay stable at 69 US cents.

The end of the first phase of the trade war between China and the US is also good news for the market, he added.

Two public holidays in Australia this week will add to a “pretty quiet week”, before a “Santa Clause” rally in the market wraps up on New Year’s Day, he said.

Monday trading will operate to normal hours, though on Christmas Eve the bourse will close early at 2.10pm and re-open on Friday.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 6,965.88.

The projected lower bound is: 6,675.09.

The projected closing price is: 6,820.49.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 31 white candles and 19 black candles for a net of 12 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 75.0484. 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 55.08. 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 119 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 76. This is not a topping or bottoming area. The last signal was a buy 10 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 buy 4 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed down -16.800 at 6,816.300. Volume was 52% above average (neutral) and Bollinger Bands were 6% wider than normal.

Open     High      Low     Close     Volume___
6,833.1006,842.8006,808.4006,816.300 966,406,912
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 6,783.58 6,734.49 6,554.16
Volatility: 12 14 13
Volume: 659,899,904 611,679,488 632,335,552

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 4.0% above its 200-period moving average and is in an upward trend. Volatility is high 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 3 periods.

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