Australia: S&P/ASX 200 (.AXJO) global stock sell-off

Australia: S&P/ASX 200 (.AXJO) global stock sell-off

The Australian share market has dived to near two-year lows amid a global stock sell-off, with energy and mining bleeding red and the banks also suffering in early trade.

The benchmark S&P/ASX200 index was down 63.5 points, or 1.12 per cent, to 5,608.3 at 1030 AEDT on Wednesday, while the broader All Ordinaries was down 68.2 points, or 1.18 per cent, to 5,691.0.

The Aussie has also slipped further, buying 72.14 US cents from 72.76 cents on Tuesday, and more than a per cent down from the 73.32 cents reached at the weekend.

The big four banks were all down, with the losses led by ANZ, which posted a 0.77 per cent drop to $25.105.

Tech shares continued to fall, losing more than 2.8 per cent early, with telco also down.

Telstra lost 1.16 per cent to $2.975.

Coles shares are due to float at 1100 AEDT, with Wesfarmers down 28.77 per cent to $31.50 without the supermarket in its stable.

Meanwhile, troubled discount retailer The Reject Shop has received a $78 million takeover bid after it had slashed its profit guidance by 40 per cent in October.

Overall, the bias in prices is: Downwards.

Note: this shows extraordinary price action to the downside.

The projected upper bound is: 5,783.87.

The projected lower bound is: 5,480.40.

The projected closing price is: 5,632.14.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 25 white candles and 25 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 15.4339. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 6 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 30.08. 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 buy 16 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 -133.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 6 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 3 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed down -29.000 at 5,642.800. Volume was 25% above average (neutral) and Bollinger Bands were 50% wider than normal.

Open High Low Close Volume___
5,671.8005,671.8005,594.0005,642.800 746,693,632

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 5,783.32 5,956.74 6,048.07
Volatility: 14 16 12
Volume: 614,148,672 612,775,616 582,365,248

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 6.7% below its 200-period moving average and is in an downward 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 bearish on .AXJO and have had this outlook for the last 54 periods.

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