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XAO Technical Analysis

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Re: XAO Analysis

Below is the weekly XJO chart (ASX200 Index) with the Stochastic and MACD indicators and the avge PER's for the major market indices.

XJO is still clearly in an uptrend but once the index PER's start rising to 20-22+ I then start anticipating a technical correction, but not a crash at this stage. Fair market PER imo is around 17-18 atm.

Food for thought :)
 

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Re: XAO Analysis

More bearish MACD divergence on the XAO. The last divergence of this kind appeared around the peak in May 06. Be alert, not alarmed...;)
 

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Re: XAO Analysis

theasxgorilla said:
More bearish MACD divergence on the XAO. The last divergence of this kind appeared around the peak in May 06. Be alert, not alarmed...;)
Click to expand...

IMO this was the last leg up in the XAO. New highs may not be seen this year like previous years. Will be some excellent trading opportunities both short and long this year. Expected this market topout between 5622-5645 range. Went a little further (5670).

Thought correction May was it, but the consolidation and final blowoff (5th wave) made the picture much clearer.

Cheers
 
Re: XAO Analysis

Hi Kennas,

A while back I made the observation that the humble RSI had been quite a good indicator of pullbacks of the XAO.... 5 year monthly chart below and 2 year weekly (with an exception) shows once RSI reaches 80 a drop ensues relatively soon after....

Note I haven't read the whole thread, nor understood all of the more technical stuff of those posts that I have read, but thought this very simple test was worth mentioning :)

Tony.

PS. I tried to inline it, but it just gave me a link.... strange as others seem to have done so successfully...
 

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Re: XAO Analysis

wintermute said:
Hi Kennas,

A while back I made the observation that the humble RSI had been quite a good indicator of pullbacks of the XAO.... 5 year monthly chart below and 2 year weekly (with an exception) shows once RSI reaches 80 a drop ensues relatively soon after....

Note I haven't read the whole thread, nor understood all of the more technical stuff of those posts that I have read, but thought this very simple test was worth mentioning :)

Tony.

PS. I tried to inline it, but it just gave me a link.... strange as others seem to have done so successfully...
Click to expand...
Thanks Tony, interesting chart. Clearly shows the bull run with the RSI running high the whole time with those corrections. Has just come off as you point out.

This 3 year weekly has the MACD falling over, Slow Stochastics falling from overbought, and the BB diverged with the XAO running close to the top, but just comming off. Perhaps the green circle will bring it back to a 3 year support line (up for argument) which is also around support at 5300 ish? That 200d ma is a long way away however. Perhaps it'll be closer when the XAO drops back a bit?
 

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Re: XAO Analysis

RSI divergence has been fairly consistent with a lot of corrections on XJO... I *will* code it one day... Would like to test it with various exit strategies. From eyeballing it seems to have a very high probability of a pullback, but that is useless without knowing when to get out.
 
Re: XAO Analysis

yeah the weekly is a little more consistent (except at the begining of the chart) the monthly sometimes went over for a while, sometimes just touched 80, but as an early warning signal I think it is ok, then you can look at other signs...

Unfortunately the other drawback is that it doesn't seem to really have a correlation to how big the pullback is going to be.... but thought it was interesting just the same :)

Tony.
 

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Re: XAO Analysis

Making yet another high.

Concerned a little that it's running away from the 200 d ma - long term ave....I see a pullback to the 5300-400 range as a healthy break in the short term, for long term gains...

I tried to put an EW count on this but I can't fit one in with fidelity.

Can anyone else?
 

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Re: XAO Analysis

hi kennas,
One indicator that I use is the divergence from the 200 d ma. If your chart program can create it, well worth it. I'll try to post a pic.
 
Re: XAO Analysis

UF, this sounds like a good indicator. Post it up! :)

I also use the distance between price and the 200-day MA but I just eye-ball it as opposed to using a crafted indicator.

BTW, I hope everyone is LONG the market right now!
 
Re: XAO Analysis

afternoon - a possible area for a pause, pattern is starting to look complete, however the breakout over resistance at previous all time highs looks pretty bullish

asxfib2201071ch.gif
 
Re: XAO Analysis

any wavers out there who can critque this? alternative is that we print a lower low and make a 5 down - 5667 area on my chart looks important support. note that my numbers vary slightly from XAO due tot he instrument I'm trading but the pattern should be pretty similar

asxewi2301072dn.gif
 
Re: XAO Analysis

Love your work Edwood. 5761 is a 144-line...might be where the wave 5 is headed? Who knows...but I like your counting.
 
Re: XAO Analysis

theasxgorilla said:
Love your work Edwood. 5761 is a 144-line...might be where the wave 5 is headed? Who knows...but I like your counting.
Click to expand...

thanks Gorilla - seems to fit but beware there might be bits that need to be tweaked, altho overall it looks like higher to me. I see Bill McLaren is suggesting we might get an exhaustive spike, which could take us to 5,800 area, but I think a lot depends on whether the US & Europe can hold support.
 
Re: XAO Analysis

oops! I see I spelt McLarens name wrong :eek: but doesn't seem I can edit my post - anyone know how to edit?
 
Re: XAO Analysis

Your A-B-C at the bottom looks incorrect.

On daily chart, I think we're either near completing a running flat wave-b of wave-(iv) or we've already started the wave-(v) higher. I was looking for another pull back toward 5500 but not sure that's going to happen if we go too much further.
 
Re: XAO Analysis

Edwood said:
oops! I see I spelt McLarens name wrong :eek: but doesn't seem I can edit my post - anyone know how to edit?
Click to expand...

For twenty minutes after you post you will see an 'Edit' button next to the 'Quote' button on your post. Click this to edit your post. Keep in mind you only have 20 minutes from the original post time to make alterations.
 
Re: XAO Analysis

Nick Radge said:
Your A-B-C at the bottom looks incorrect.

On daily chart, I think we're either near completing a running flat wave-b of wave-(iv) or we've already started the wave-(v) higher. I was looking for another pull back toward 5500 but not sure that's going to happen if we go too much further.
Click to expand...

ah ok - yes I was tossing up between 1-2 out of the low or A-B-C, thanks for your feedback Nick
 
Re: XAO Analysis

Joe Blow said:
For twenty minutes after you post you will see an 'Edit' button next to the 'Quote' button on your post. Click this to edit your post. Keep in mind you only have 20 minutes from the original post time to make alterations.
Click to expand...

ok thanks Joe, I see that now
 
Re: XAO Analysis

updated count - rejected at the 1.68 fib extension of my waves 1 & i

asxewi2401070bm.gif


looks like a bear flag forming on 1min chart, possible 13 pts out of it.
 
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