October 28, 2008

XAO – 20 – 24 October

By Planet Wealth

Since reaching the Head and Shoulder target two weeks ago, the XAO has went sideways.

The sideways movement has been between two major weekly support lines, until today. Friday was with the go. There are several signs indicating there is a weakness in the go and has less probability of continuing.

First, is the low volume the breach has. Volume is a key in any sustainable go. Second, is the four (4) other indicators we use in the trading room. Everyone of them is showing conflicting signs to the downward go. As the XAO heads down the indicators are starting to strengthen and rise, suggesting the go will be small lived.

Does this mean we can expect some bullish moves next week?

(click on image to enlarge)

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