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, July 28, 2011

Spectre forms of further falls

The higher low and lower high observed on the daily chart that I alluded to in the last post looks like a pennant on a weekly chart of the All Ords. Such consolidations sometimes form mid-way in a trend. A fall out of that pennant would indicate that this decline could reach 4200 (XAO). It is of course by no means certain - a reversal here is quite possible - but it is looking increasingly likely that in 2-3 weeks time the All Ords will be at around 4200. A close below the lower trend line on the pennant should act as a trigger for further selling.
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