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, June 29, 2011

Another reversal pattern forms on All Ords

On the daily chart, today's move confirmed the bullish harami candlestick pattern which formed yesterday. We now have in place the most promising signs yet - since the decline began in April - that a rally is about to take place. The weekly chart is also shaping up to make a reversal pattern - a close on Friday above 4566 (XAO) would probably confirm a weekly candlestick reversal has taken place. Before we get too carried away, we should keep in mind that the most likely outcome of a rally is that it will not last. Reaching 4,800 (XAO) however, is certainly a reasonable prospect. What is also likely - looking from this vantage point - is that after that, the decline will resume and the market will fall to new lows. What would negate that view would be a rise above 4890.
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