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, July 20, 2011

Bullish signal on All Ords

It looks like the market has 'drawn a line in the sand' at around 4520 (All Ords). Today's price action created the '3 River Morning Star' candlestick reversal pattern. With the Stochastic only just starting to rise, this seems like quite a bullish signal. The first potential resistance is the downsloping line joining the 2 ellipses shown on the chart below. If the market reaches that point it will be the first time in the decline from the April high that the market has tested that '2nd' ellipse resistance. If it breaks through that resistance, it will be the first sign the market wants to go much higher. It is also at around that level that I expect the XAO Indicator to turn blue again.
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