This week on the XAO has been an interesting 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.

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