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, August 23, 2011

Good signs on the All Ords

The little correction from the recent rally seems to have ended in a support zone (blue ellipse on the chart below). The Stochastic seems to have worked off the overbought condition and is now back in the oversold zone - a good place from which to launch a rally. To top it off, we got a nice little candlestick reversal today. If we can rally through last week's highs, we could reach the 'real' resistance for this market. That lies at around the 4500 - 4550 level. On the flip side, keep an eye on yesterday's low (4145). A close below that low will indicate lower prices to come.
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