ASX is still struggling to stay above the half- way mark in recovering from the GFC
After finally reaching a high at 5250 the XJO has faltered in its upward climb but is continuing to find support at around 4950. This is encouraging at least. Breaking support would be a gloomy prospect for investors hoping that the Australian market will eventually match the USA in finding new highs above the pre-GFC peak.
Uptrend still intact
The weekly chart above shows that in spite of the falls of the past two weeks, the uptrend will remain intact if there are no further declines below this past week’s low at 4898, and the previous low at 4884. The fall for the week was 56.6 points, continuing the impulsive move lower of the previous week, an alarming 197 points
?Time for a new impulsive move higher to emerge.
The daily chart shows how the move lower has lost momentum this past week. Although Thursday May 30 the ASX 200 fell below support at 4590, the fall was arrested still above the last low at 4883.7.
The candlestick appearance for Friday May 31 has a small real body with a longish upward shadow forming pretty-well a gravestone Doji.
This suggests that buyers started to bid prices higher, but lost confidence that it was time for a rally when sellers gained the ascendancy.
It would seem likely that indecision will persist into next week, but one would expect that a rally will soon emerge.
- Iron ore prices hit seven-month low, Aussie miners affected (mining.com)
- Aussie and NZ dollars becalmed in thin markets (xe.com)
- Aussie Dollar Might Have Suffered Enough (blogs.wsj.com)
- Shanghai rising but Nikkei, ASX selling pressure (stocktipsinvestment.blogspot.com)
- Aussie wealth growth outpaces US (news.theage.com.au)
- Aust shares close flat (bigpondnews.com)
Categories: Chart Analyses, Technical Analysis, Trading opinion
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