Archive for November, 2008

Support for 10 Year Up Trend

Wednesday, November 26th, 2008

This week on the XAO has been an interesting week. We saw the XAO reach the 50% mark from the high in November last year. That is, in 12 months the market has halved it’s value.
Right now the weekly chart is showing the week ending right on a weekly support line as well as a [...]

OST Double Bottom

Wednesday, November 19th, 2008

Over the last month,  alot of stocks that have been falling are starting to show signs of a decrease in the downward momentum.
OST is one of those stocks. It has formed a potential Double Bottom (DB), which can be a reversal signal. Firstly, let’s define what a double bottom is. The double bottom is a [...]

The Big 4 Aussie Bank Patterns – ANZ – CBA – NAB – WPC

Monday, November 17th, 2008

In a previous post I talked about getting to know stocks on an individual basis to get an idea of what patterns work well on each one. On the flip side many stocks also seem to mimic one another to a certain extent.
BHP and RIO are two stocks that are well known for trending the [...]

Weekly Wrap – Head and Shoulders Pattern

Monday, November 17th, 2008

After another down week on the XAO, it has produced a potential Inverted Head and Shoulders (INH&S) Pattern.
There are two possible scenarios that we could see this week. First would be a continuation of the short term down trend that started last week. If the XAO continues with a negative sentiment this week we could [...]

Flag Pattern

Monday, November 17th, 2008

A common pattern we are seeing alot of in the trading room of late is a Flag.
The flagpole will usually develop because of positive news such as favourable company earnings announcements: basically news that will spike the price of a share higher.
After the price of a stock has risen so quickly and the excitement [...]

Protect Yourself in The Stock Market!

Thursday, November 6th, 2008

Unless you’ve been living in a cave somewhere, you’ve probably noticed the world is in real trouble.  Businesses are going bust, global corporations are bankrupt, people are losing millions (and in some cases, billions!) and markets around the world are falling off a cliff.  Basically, the financial world is going to hell in a hand-basket!   [...]

Inverted Head and Shoulder Pattern

Thursday, November 6th, 2008

In previous stock reviews I have discussed Head and Shoulder patterns, a bearish signal. There is also a bullish version, called an Inverted Head and Shoulder Pattern (IH&S).
These IH&S are found at the bottom of a down trend and can signify a trend reversal. WBC has an IH&S right now on the weekly chart. As [...]

XAO Weekly Wrap

Thursday, November 6th, 2008

Last week we saw the XAO close below a weekly support line on low volume and questioned if it could sustain the move due to the low volume and RSI divergence.
When we look at what happened this week we can see the XAO could not sustain the down move and though it travelled south about [...]