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Wednesday, July 28, 2021

Australia: S&P/ASX 200 (.AXJO) Slides Over Surging Virus Infections

$AXJO #ASX #Australia #Stock #Market #ASX200

The benchmark S&P/ASX200 (^AXJO) closed down more than 1.5 per cent, amid growing concerns regarding rising coronavirus cases in Victoria and overseas.

The broader All Ordinaries index also finished 1.51 per cent lower, following a drop in United States markets overnight.

What happened this morning?

The benchmark S&P/ASX200 opened flat, falling 0.035 per cent to 6010.8 points at 10.18 AEST, after US stocks dropped on surging coronavirus cases.

The broader All Ordinaries index followed the same path, dropping 0.062 per cent to 6122.90 points at 10.20 AEST Wednesday.

Today’s downtrodden start follows a flat day for stocks on Tuesday, as Victoria reported a record 191 new cases of coronavirus and embarked on an additional six weeks of lockdown.

Financials were the worst performing sectors on Wednesday, with ANZ, NAB and Westpac trading down by 1 per cent, while CommBank was down by 0.67 per cent.

One Australian dollar was buying 69.42 US cents at 10:05 AEST, down from 69.52 America cents at the close of trade on Tuesday.

What happened overnight?

The United States market posted losses on Tuesday, as the nation reported tens of thousands of new virus cases, with some states pushing back their reopening.

The losses came a day after the key Bourse, the S&P 500, recorded its longest streak of gains this year.

The Dow Jones Industrial Average fell 396.85 points, or 1.51 per cent, to 25,890.18, the S&P 500 lost 34.4 points, or 1.08 per cent, to 3,145.32 and the NASDAQ Composite dropped 89.76 points, or 0.86 per cent, to 10,343.89.

Technical Indicators

Overall, the bias in prices is: Upwards.

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

The projected upper bound is: 6,210.00.

The projected lower bound is: 5,654.89.

The projected closing price is: 5,932.44.


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 32 white candles and 18 black candles for a net of 14 white 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


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 47.2859. This is not an overbought or oversold reading. The last signal was a sell 1 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 51.57. 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 19 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 6. This is not a topping or bottoming area. The last signal was a sell 0 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 0 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed down -92.600 at 5,920.300. Volume was 30% below average (neutral) and Bollinger Bands were 69% narrower than normal.

Open       High       Low        Close       Volume
6,012.900  6,018.400  5,920.300  5,920.300   774,147,712
Technical Outlook
Short Term:        Neutral
Intermediate Term: Bearish
Long Term:         Bearish
Moving Averages: 10-period      50-period       200-period
Close:           5,940.75       5,739.18        6,254.16
Volatility:      26             31              38
Volume:          782,519,680    969,312,640     827,834,304



S&P/ASX 200 is currently 5.3% below its 200-period moving average and is in an downward trend. Volatility is relatively normal 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 0 periods.


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