Early in the week, the XAO had heavy moves to the down side but managed to gain back most of the losses by the close of session Friday. In all the talk about how far the market could fall, was there signs it would be short lived?

As seen in the daily chart below the XAO has two key Moving Averages (MAV) that the XAO has respected over the last 5 years.

When taking a closer look at the daily chart, it’s evident the crossover of the two MAV’s happened prior to the market fall this week. This cross over was a bullish signal that had added strength by the higher peak created above this. Though the drop was quick, technically it would have been reasonable to expect support at the MAV’s, which is what happened. Now there is and Higher Peak (HP) and a Higher Trough (HT) above bullish crossed MAV’s. This is a significant Bullish Signal.

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