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.

Wednesday, November 17, 2010

All Ords testing support

The All Ords is now at the bottom of the range of the old resistance zone - 4700. Since early October the All Ords has hardly spent any time below 4700. Look at the chart below and you will see what I mean. A couple of days below 4700 could portend lower prices. And significantly, the XAO Indicator will turn red below 4640 (dotted green line).
On the chart above I have also drawn in the common retracement levels of the move down from the April high to the May low. As you will see is quite common for the price to oscillate between the common retracement levels. If this were to continue to hold true then the All Ords could bounce from here (being the 61.8% retracement level). If it does not hold here, then the next support level could be around 4620 (being the 50% retracement level). To me that looks the most likely although at that level the XAO Indicator will be red.
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