Market Analysis July 12, 2013

XJO about to retest  the 50$% retracement level at 5000.

XJO about to retest the 50$% retracement level at 5000.

XJO rallies after 38.2% retracement

XJO rallies after 38.2% retracement

 

 

 

 

 

 

 

 

 

Not this week.

Not this week.

 

The XJO 5000 level is proving to be a stubborn obstacle to further gains of the Australian share-market at a time when the USA indices have forged new highs after the GFC.

After reaching 5250 in a previous thrust above 5000, the XJO developed the jitters at such a “heady” height, and went into a decline starting in the bogey month of May.

After a 38.2% retracement, the index found support at 4650, forming a double bottom, and has rallied steadily since.

Today buyers pushed the index higher to just reach the key 5000 resistance level before sellers took profits  and lowered the index to a close at 4980.

The candlestick appearance for today’s trading can be perhaps called  a “near” gravestone Doji, since the real body is not as small as usual. This appearance indicates trader indecision, and raises the spectre of a short-term trend reversal next week

The RSI however is at 60, and still short of overbought territory.

My expectation is for 5000 resistance to be tested again next week.

 



Categories: Chart Analyses, Technical Analysis, Trading opinion

Tags: , ,

2 replies

  1. Thanks Ken. Gravestonre Doji’s……. this is definitely a whole new world for me but fascinating.

    Hope you are feeling much better.

    Regards

    Erik Metanomski

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