I am not a financial adviser so you should not take any part of this blog as being financial advice. Observing and interpreting charts is a hobby and so is this blog. The information in this blog is just my opinion, it may not reflect reality. Stock market investing is risky - you can lose all, or potentially more than all of your money given certain market conditions. Not only can you lose a lot of money buying shares, you can also lose a lot of potential profits by selling shares at the wrong time. So please do not buy or sell shares because of information in this blog. Whether you buy or sell shares is your decision as is the decision when to buy and sell. Do not risk any money you cannot afford to lose. Do not risk any money if you do not fully know and understand what you are doing.

Tuesday, June 22, 2010

Is the Indicator pulling back from the brink?

The area covered by the long blue rectangle in the chart below has formed substantial support for the All Ords Index since October 2009. Often, previous support will act as the new resistance level (and vice-versa). Right now the index is in the middle of that support/resistance level. There is a danger that it will fall back from here just as it is on the verge of turning positive (blue). This not uncommon. So, we continue to be wary that the next major move could yet be down.



Click on chart to enlarge
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