November 26, 2008

Support for 10 Year Up Trend

By Planet Wealth

This week on the XAO has been an fascinating 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 10 year up trend line. This is likely to give the market very strong support.

(click on image to enlarge)

Then moving over to the daily chart, there is a down channel that has been respected for the last 3 months. Friday closed above the weekly support and 10 year trend line, with the day’s trading respecting the channel. The candle produced for the day, a green hammer, along with higher volume, is also a bullish reversal signal. All these signals are indications that we could see the market pop next week.