This week on the XAO there was a rise of 172 points over all. Is this move to the upside likely to continue? Let’s take a look at what the stock chart chart is showing us.

Tuesday was a bounce off a support after downward momentum failed to continue on from Friday. As the week progressed there was small movement s up. At the close of Friday, the XAO rests at a cross roads of two validated trend lines. The first is the top of a channel that has been forming over the last 5 or 6 months and the second is a resistance line that has been well respected particularly in that last 2 months.

The direction of the XAO next week with the higher probability is down to re test 3300. If it was breach up and out of the channel and resistance that it now sits at, we could see 3700, which is the next major resistance.

(click on image to enlarge)

Go to http://www.planetwealthtradingroom.com for our live trading room