Archive for May, 2009
« Previous EntriesXAO Short Term Resistance?
Sunday, May 31st, 2009The XAO had a honestly flat week this week, by gaining any losses and loosing any gains made. There is a small pennant formed on the daily chart by the indecision of the buyers and sellers. Still being held up by the six month up trend line, the index is getting squeezed in by [...]
QBE Still Bearish… But for How Long?
Friday, May 29th, 2009There are many stocks that are now giving bullish signals, but it is fascinating to see that in some sectors that are strong, there are still particular stocks that are very bearish. QBE is a stock that is particularly bearish even though the financial sector as a whole is looking strong. This week has [...]
NAB in Consolidation Pattern
Wednesday, May 27th, 2009March and early April saw all the banks rally hard with the rest of the market. After this rally there are signs of weakening in many. NAB is one of those stocks. Nab found resistance at $23.50 after the rally. This resistance level has been valid as far back as 1999 and is also [...]
ASX heading Downwards?
Monday, May 25th, 2009The XAO closed with a Dark Cloud Cover last week on the weekly chart, which indicated a likely pull back this week. And this is what happened. There was a small pause and bounce made by the small term resistance on the daily chart. Now a lower peak (LP) has been formed under the up [...]
Westfarmers Broken Past a Major Weekly Support Line
Monday, May 18th, 2009WES (Westfarmers Limited) has broken through some significant points of support this week. If we take a look at the weekly chart, we should be able to get an overview of how we would expect the stock to behave in the coming weeks. Peaks and Troughs are key indications for chart reading. When Lower Peaks [...]
Japanese Candlestick Pattern
Saturday, May 16th, 2009The XAO has now confirmed 3900 resistance from 2005 to still be valid. By respecting the resistance this week, a powerful Japanese Candlestick Pattern has formed. The Dark Cloud Cover. What is a Dark Cloud Cover? The Dark Cloud Cover Pattern is a bearish reversal pattern, found at the top of an uptrend. It is [...]
AWC Fibonacci Retracement Level
Wednesday, May 13th, 2009Like many other stocks AWC is one that hit all time lows in the crash of the market. But again like many other stocks it is now showing possible signs of recovery. After hitting a low of $0.79 in March 2009, the weekly chart has now made the first set of Higher Peaks (HP) and [...]
Bullish Candle For XAO
Monday, May 11th, 2009This week the XAO closed with a bullish candle above the resistance it has been struggling at for the last 4 weeks and has now made a major Higher Peak (HP) indicating the Bulls are trying to take control. Now sitting at the nest resistance level of 3950 a break through here would indicate a [...]
STO Pennant Formation
Thursday, May 7th, 2009At the beginning of the year I did an analysis of STO. It showed strong resistance and high probability of running down at the 50% or 61.8% Fibonacci level. Where is it at now? STO did manage to continue up past the 61.8% Fibonacci level, but not very far before encountering the current resistance. It [...]
Fibonacci Numbers in Trading
Tuesday, May 5th, 2009The Fibonacci retracements pattern is a powerful tool used by technical traders to identify reversals on a stock chart. Let’s take a look at the Fibonacci sequence and show some examples of how you can identify this pattern. Fibonacci numbers were developed by Leonardo Fibonacci and it is simply a series of numbers that when [...]
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