The 78 point rally in the XJO this past week ended the 182 point impulsive move lower over the previous 7 trading days which broke support at 4450, and initiated a downtrend. The candlestick appearance for trading Friday Nov 24 was a so-called “dragon-fly Doji” suggesting indecision as to market direction for the coming week.
Trading this Monday may well set the direction of price movement for the week. A move of the index lower would end the rally of this past week, and confirm a down-trend until the US fiscal cliff threat is resolved. If on the other hand the index moves higher one would look to see the support resistance level of 4450 penetrated, and support regained.
One of the best performers for the week was the market’s present quiet achiever Telstra; it finished the week at $4.27, after a year high price of $4.29.
Categories: Trading opinion