The long-term perspective for the Aussie Market.
Monthly chart, May 17 2013, of the XJO, (ASX200)
Now that the XJO has penetrated and found support at the half-way mark (5000), the next hurdle, assuming bullish conditions continue, is the 61.8% Fibonacci retracement level. This is at 5400.
The last monthly candlestick at present has the appearance of a Doji, at 5200, indicating some lingering uncertainty about further gains. However as the month is not yet finished, this appearance could alter.
The mid-term picture
Weekly chart, XJO (ASX200), May 17, 2013
Overall the Australian market remains bullish with the XJO reaching a high of 5250 this week before pulling back to support at 5164. The recent retracement was at the bullish end of the usual range between one-third and two-thirds of the previous impulsive move higher; it was 33.74%, just short of the 38.2% fibonacci level.
The candlestick for this past week of trading has the appearance of a “spinning top”; it too implies a degree of market ambivalence about the next market direction..
However the next target for the XJO is 5400. This is within reach in the next month if bullish sentiment continues.
Categories: Chart Analyses, Technical Analysis, Trading opinion
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