Planet Wealth - Australian Stock Market Education » Head and Shoulders http://planetwealthblog.com.au We are a stockmarket investment company that educates people on the strategies we use to create both income and capital growth. Fri, 23 Dec 2011 00:20:36 +0000 en hourly 1 http://wordpress.org/?v=3.1.1 Head and Shoulders http://planetwealthblog.com.au/head-and-shoulders/ http://planetwealthblog.com.au/head-and-shoulders/#comments Tue, 14 Oct 2008 00:31:27 +0000 Planet Wealth http://planetwealthblog.com.au/?p=71
Head and Shoulders

Last month we looked at the Head and Shoulders (H&S) pattern that had formed on the XAO.

The week commencing 15/09/08 was a confirmation bar, of a Lower Peak(LP) below the key Moving Average (MAV), so that meant  the XAO had LP and LT below the MAV (a very bearish signal) as well as the H&S(another bearish signal). This particular week also pierced the neckline of the H&S pattern, but failed to close below, so there was still caution about wether the H&S had been confirmed.

Two weeks later we saw a close below the neckline, confirming the H&S pattern. In one week (this week), the XAO has managed to reach the projection, which also happens to be a support line. With all the bearish signals the charts have been giving us, should we be suprised this week fell so hard?

Now for the next question: Is this the bottom of the market or is there more to come?

(click on image to enlarge)

101008 xao Head and Shoulders

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