November 6, 2008
XAO Weekly Wrap
By Planet Wealth
Last week we saw the XAO close below a weekly support line on low volume and questioned if it could sustain the go due to the low volume and RSI divergence.
When we look at what happened this week we can see the XAO could not sustain the down go and though it travelled south about 250 points at the beginning of the week it gained back the losses, plus 40 points.
The market has broken up through the weekly resistance that was breeched last week, and has closed above on excellent volume. Now we can see a down trend channel is evident and in play for next week. Will the XAO be able to break out of the channel that is currently pushing it down or will it respect the channel and continue down.
(click on image to enlarge)
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