Wavepicker
I think your analysis is right on the money. Thanks for posting your chart great stuff.
There are problems with the magic number of 6400 on the xjo and for the highs set on the all ords as well.
Whether on not the dow rises or falls does not as you have all seen off the last 4 days tell us that we will follow into blue sky's. If you want a example see the charts of both indexes this time last year the dow broke out in july we banded till September.
I am also with wavepicker now thinking we will stay in this band. We have had lots of good reasons to bust out. The buyer confidence at the current time just aint there.
So back to the side lines for me right now on my xjo trades.
Agree, theres definately bearish sentiment in the local markets.
Significant resistance at the 6400 level now, looks like we will range trade for a while.
Wavepicker
I think your analysis is right on the money. Thanks for posting your chart great stuff.
There are problems with the magic number of 6400 on the xjo and for the highs set on the all ords as well.
Whether on not the dow rises or falls does not as you have all seen off the last 4 days tell us that we will follow into blue sky's. If you want a example see the charts of both indexes this time last year the dow broke out in july we banded till September.
I am also with wavepicker now thinking we will stay in this band. We have had lots of good reasons to bust out. The buyer confidence at the current time just aint there.
So back to the side lines for me right now on my xjo trades.
I would think the more bearish sentiment the greater chance we will have of breaking out on a short cover rally or sucking underinvested traders into the market. It seems that everyone is thinking the same thing i.e. range bound. Is there no one out there that is Bullish after a two month consolidation?
gap filled seems to have found support all looks a bit corrective (just using the same chart TH to show the fill)
No prob Edwood. Was just interested because the opening auction makes gaps not that common in our market.
I think its getting pegged to 6350 for options expiry tomorrow.
That XFJ chart is going to be looking pretty good by the end of trade today. It has just gone green. Just about completed a change of trend. I have been banging on about that for weeks and if so I reckon new highs aren’t that far away. Has made a higher Low 5 days ago and now showing relative strength to the rest of the market. Being the largest cap sector in the market it’s important.
Will be an interesting night.. some negative sentiment for Bernanke's speech already seems to be built into our market.
To be honest, I think a fall of the XAO below the resistance of 6200 would actually be a good thing to sort things out now, rather than later.. this sideways wave action really isn't doing much either way.
gfresh,
I would like to see this continuation pattern hold, a drop though support would suggest further down side and more unstable times. I don't agree, it wouldn't be a good thing. The side ways action is doing some thing, its a consolidation period that adds more punch to the break out the longer its stays in the range.
I have posted a chart of this time last year as you can see we were in a range that lasted a couple of months then broke out. funny to say also that the dow also broke out before we did like last year and it broke out in july as well just like this year lol and inflation was the main worry! oh and who said history does not repeat! this year its combined with sub prime.
Some differnces from this range to last year, there is more over head resistence this time to last time. Last year was oppersite more base touches and only two over head. Last may was a real correction into the range this year we have not had a true sell off into this range. Just some observations.
Good trading.
See chart.
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