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.

Friday, July 23, 2010

Is direction about to change?

Over the past week or so, the All Ords has formed a tiny 'flag' and today it broke out of that flag. Often, a flag forms at about half way of the move. The half-way point is shown by the dashed green line. This means that we can expect the All Ords to reach the upper green line - at a minimum. I expect it to find resistance at that point and 'lo and behold' that resistance coincides with the June high. If the June high is taken out, the XAO Indicator will turn blue. To me the price move from the July 6 low looks bullish. I think the odds have shifted and favour a change of direction to the up. This won't be confirmed until the June high is taken out.


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