This is a mobile optimized page that loads fast, if you want to load the real page, click this text.

XAO Technical Analysis

Jump to new
Re: XAO Analysis

What bothers me is the dropping off of both RSI and MACD while the prices essentially move sideways, and the increasing volatility. Both bearish signs IMO.

Having said that though, there does seem to be reasonable support around 6200.

Cheers,
GP
 

Attachments

  • XAO_GP19.gif
    17.2 KB · Views: 234
Re: XAO Analysis

Further to my graph yesterday, nice blue candle today.. thought things would be neutral with the DOJ closed last night, but guess I was wrong. Possible upwards breakout.. Very close to 6400.. will be very telling next few days..

3 failed breaks past 6400 would be a very bad sign IMO
 

Attachments

  • xao_5july07.jpg
    73.8 KB · Views: 218
Re: XAO Analysis

gfresh said:
3 failed breaks past 6400 would be a very bad sign IMO
Click to expand...

I'm still a newbie, but I wonder if patterns such as the triple top would apply to an index as well?

Using the above chart, it seems to show that buying interest is drying up, with a few days of trading in a very narrow range (except for today), with volume decreasing each day. (hopefully, I'm not speaking complete rubbish)
 
Re: XAO Analysis

Awesomandy said:
I'm still a newbie, but I wonder if patterns such as the triple top would apply to an index as well?
Click to expand...

Certainly...however many a flat-topped ascending, 3 or 5 wave, triangle pattern was a triple-top before it became a breakout...connotations intended with the WorldCom example too!
 

Attachments

  • 20070705 - Triangle Patterns.png
    3.1 KB · Views: 211
Re: XAO Analysis

Maybe the consolidation we had was a stealth correction. After some thinking, I'm putting my bull horns back on. I think this next up move might actually break the 6400 level...lets hope so.
 
Re: XAO Analysis

You could be right HM. Some bullish divergence happening. One thing is for sure, Prof and Edwood, Trade It and the other index traders will be watching what happens when that resistance is touched!

Cheers,
 

Attachments

  • xao triple top.jpg
    103.9 KB · Views: 174
Re: XAO Analysis

CanOz said:
You could be right HM. Some bullish divergence happening. One thing is for sure, Prof and Edwood, Trade It and the other index traders will be watching what happens when that resistance is touched!

Cheers,
Click to expand...

Hi Can I am all ready long in the xjo, after a saw some confrimation on this latest push to 6400.

Keeping it small until i see it break 6400 as last rise turned rather quick off the top.

be a great place to add if it can break 6400.

watching with interest.
 
Re: XAO Analysis


Figured you would be TI. What you make of that bullish divergence?

Cheers,
 
Re: XAO Analysis

Personally, I don't see that as positive divergence because that second drop did not form a lower low.
 
Re: XAO Analysis

Right, well I have posted a copy of the XJO, not XAO here, but the point is the same. There is still bearish divergence on our MACD and we are at the edge of the defined trend range.... So the billion dollar question is where to from here. Could be a triple top, but we would need to break down through 6180 for that to occur. Then again, we could just be exiting from a 2.5 month period of accumulation, confirmation here would be a break of 6410 and we are very close....

I'm not a big one on making market calls, but considering the worldwide index view, the probabilities would have to lean towards another bullish move up....... Any views here, Tradeit, I know you are sitting on the sidelines waiting for confirmation......

Cheers
 

Attachments

  • XJO.jpg
    120.2 KB · Views: 111
Re: XAO Analysis

hacheln_mice said:
Personally, I don't see that as positive divergence because that second drop did not form a lower low.
Click to expand...

Hmmm, looked it up from John L. Person's - Technical Trading Tactics, page 118, refers to a similar situation as Bullish Convergence, price makes a double bottom, Stoc makes a higher low....actually i incorrectly referred to it as Divergence. I could be interpreting this wrong HM. By all means set me straight, i'm no expert on TA thats for sure, and curious to know.

In anycase...it was bullish for today!

Cheers,
 
Re: XAO Analysis

As the XJO is an aggregated constituent instrument its probably not worth getting pedantic about 1 or 2 points here and there, so it's plain to see that todays move took us to that significant resistance level of 6400. We've been above it ever so slightly, but never convincingly. Breakout, sideways or turned around...tomorrow's price action could be any of these.

Asia was up today, Europe IS up, Americas still yet to come.
 
Re: XAO Analysis


Cheers ASX, agreed that one shouldn't get too pedantic about the precise price targets, don't be a dick for a tick!!!!

Let's hope it's a breakout tomorrow moving us out of the trading range were in............ BHP is way way way up however, so not much room to move at the moment.....

Cheers
 
Re: XAO Analysis

reece55 said:
BHP is way way way up however, so not much room to move at the moment.....

Cheers
Click to expand...

Your not wrong, and as a result so is the XMJ, parabolic.

Cheers,
 

Attachments

  • xmj.jpg
    99.7 KB · Views: 81
Re: XAO Analysis

reece55 said:
Let's hope it's a breakout tomorrow moving us out of the trading range were in............
Click to expand...

I suspect the financials may be the key...if they reverse/breakout then they'll stop acting as a anchor for the index which is being led by the materials (as canaus pointed out) and energy to a lesser degree.
 
Re: XAO Analysis

Guys never say a stock or market does not have room to move, A market can do anything up or down!

make your plays off the evidence being presented not of assumption based on personal feelings. That's the way I approach it.

tonight being critical, maybe maybe not if it does fall tonight why will the flood gates open?

I have made a preemptive play, added another long to the xjo as the charts in on the dow and xjo for now say yes higher prices can expected while it sits on its current short term trend line. DOW lagging on the chart compared to the xao and xjo. As we are looking to test mayor resistance dow still to meet it. on all thee charts negative 45 degree harmony has been broken. with only major resistance to be beaten. Also note volume drops off in a diagonal descending fashion on the dow and xao that is text book volume behavior in a ascending triangle continuation pattern.( I have the text books to prove it!)

Can,

I am seeing good things here right now in our market and on the dow. This is a valid short term trend with a good angle just above 45 degrees very bullish.

will it hit new highs or retreat back to its support is up to the market to decide but either way i am ready for whatever move comes.

green arrows are my buy points, tight stop on the second entry.

sorry for all the pfd's have to get a new image writer for bourse.

good trading.
 

Attachments

  • Chart_ XAO .pdf
    32.6 KB · Views: 4
  • Chart_ XJO .pdf
    34.7 KB · Views: 6
  • Chart_ DJI.pdf
    31.7 KB · Views: 3
  • Mini Australia 200 Cash XJO (A$5 C (90707).jpg
    90.4 KB · Views: 78
Re: XAO Analysis

Thanks TI....truely interesting times, thats one of the things i love about this interest, anything can happen, each moment in the market is unique, never will there be an absence of an opportunity to learn something new...

Cheers,
 
Re: XAO Analysis

CanOz said:
Thanks TI....truely interesting times, thats one of the things i love about this interest, anything can happen, each moment in the market is unique, never will there be an absence of an opportunity to learn something new...

Cheers,
Click to expand...

I agree with you 100%

Wall st up right now...........
 
Re: XAO Analysis

One thing that troubles me for the oz market is the influence of just a few stocks eg BHP & ZFX masking a weak underlying market. Take out these 2 and a handfull of others & we have a pretty ordinary market - hardly inspiring.
The banks, apart form CBA, have failed to keep the pace too.

While it still has room to move, BHP's chart is parabolic on the monthly and getting close to the top of brokers near term price targets, some breathing space needed perhaps.
Any serious profit taking with these 2 and the indexs will come off a bit I think.
 
Re: XAO Analysis

.. or if you took out the growth in resource stocks altogether

Already a few comments out of the US about 'sitting on the sidelines', and 'fully valued' may not lead to much further growth there - which will probably hold us back as well.

Couple of possibly telling comments, taken from today's US market wrap:

http://money.cnn.com/2007/07/09/markets/markets_0530/index.htm?postversion=2007070917


and..

 
You must log in or register to reply here.

Similar threads

What are the two main types of market analysis and how can we combine them?
2
Replies
31
Views
4K
tech/a
Ryan's Trading Journal (F/A+T/A Strategy)
6 7 8
Replies
141
Views
34K
aus_trader
DangInvestor.com - Business Analysis and Value Investing Software
Replies
9
Views
5K
luutzu
Pixel's Picks - potential trend reversals off the bottom
2
Replies
22
Views
15K
pixel
The Beginner Trader's Manual Guide
Replies
9
Views
20K
commoyo
Menu
Log in
Register
Cookies are required to use this site. You must accept them to continue using the site. Learn more...