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.

Monday, June 6, 2011

Here's a tiny bit of hope

I have been looking around for some hope for the bulls and I found some. In the decline from the April high, every time the stochastic indicator moved under 12, the market bounced. When the stochastic gets to those levels it's not a bad time time for the shorts to take profits. But the most you can hope for - at this stage - is a 'profit taking' bounce. Also, at around 4625 (XAO) there's a MOB (make or break) support level. That generally means that if the market does not hold at that level, you will probably see lower prices. But it can also mark a turning point. Now, any bounce we might get here (repeat 'might') should be viewed with suspicion. Obviously sooner or later we will get the real deal but personally I will be looking for confirmation on a weekly chart before I would be calling this decline over. (On a weekly chart, the closest MOB is at 4460 on XAO).
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