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.

Thursday, November 4, 2010

All Ords through resistance zone

The All Ords is well and truly through the resistance zone we have been watching for many weeks - but it has been a struggle. Theoretically we should roll on now until the next significant resistance - 5000. The 5000 level represents a 50% retracement of the move down from the all time high in November 2007 to the March 2009 low. If the market gets there, it will be the second test of that level - the first attempt was in April this year. The XAO Indicator remains blue and while it does so we should hold on to our long positions. Hopefully any pull-back will find support at the previous resistance of 4700-4750. Here are two charts. One is a daily of the All Ords and the other a weekly to give you a longer term perspective. Click charts to enlarge.

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