February 7, 2009
Stock Market to Continue Downtrend
By Planet Wealth
The XAO is now showing clear signs of sellers in control after a push higher late last year and the beginning of this year.
Last week produced a Lower Trough (LT) and this week saw the first Lower Peak (LP) telling us the sellers have taken over control from the buyers. This has also now made a small term down channel.
When looking at probabilities of what a stock will do, there are now alot stacked in favour of The XAO continuing down. A few weeks back a bearish flag was identified with a medium term view of reaching around 2500 mark. Now the sellers have taken control producing LP and LT and a support that was pushing it higher is now a resistance keeping it down.
(click on image to enlarge)
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Topics: Technical Analysis, bear market, stock market, trading room | No Comments »
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