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, November 23, 2010

Support not holding

The old resistance zone of 4700-4750 does not seem to have provided much support. If the All Ords closes under 4700 for more than a day or two more, it will not auger well for the near term. What's more, an intra-day low on the All Ords below 4651 (tomorrow) will turn the XAO Indicator red. As we know from experience, when the XAO Indicator turns red, we need to be cautious - to say the least. For what it's worth, I continue to believe that the 4620 level will provide good support but that will be in the face of a red XAO Indicator. Given the increasing international volatility (Korea, Ireland, China 'tightening'), you would have to say that if the XAO Indicator turns red tomorrow, you might prefer to watch from the sidelines.
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