Basic analysis of the XAO with a monthly chart drawing a line through the two most significant peaks. In my opinion, 5800 is the area of near term interest on a monthly basis (like not tomorrow ). The two periods semicircled are obvious support areas. Mid range now.
I'm reconsidering that bullish prediction from yesterday. I think the Ords is very close to getting smashed into the red.
Main reason - mean reversion just hasn't been happening in the last two weeks. Combined with worldwide political instability (Russia, Malaysia, Philippines, North Korea, USA), could be the perfect storm.
[edit] Markets don't allow you a foot in both camps. So I've started selling.
This week I had 3 orders miss by a hair's breadth, missing out on the equivalent of 3 weeks of expected salary. Who cares? No one. But that's slippage for you.
my view - if price closes below todys close tomorrow then it will test the 200 day ma; which has provided some support/resistace recently. If that breaks then probably head towards 5200-5100 area. Which is the lower boundary of a possible major triangle pattern off the 2009 lows.