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, September 7, 2010

Is XAO headed higher? For how long?

Despite the recent rally, the XAO Indicator has yet to change to blue but it is less than 5 points away. 4,619 is the level at which it will change and that could come as early as tomorrow. But if it does change, how long will it last? As you can see from the August 28 post, September is historically the worst month for the Dow and our market will follow the Dow. Today's chart shows the downsloping trend line drawn by connecting the high of Nov 1, 2007 and the high of April 15, 2010. That should create some resistance for the All Ords between 4,700 and 4,750 and that should come in the next week to ten days just in time for a September high.

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