We are only two trading weeks into the New Year, but it is worth noting that the 1000 point downturn of the XAO (from 6500 to 5500) is rebounding at present.
- The share index action has broken through the 6 month down-trend line.
- An Inverted Head and Shoulder Pattern has formed.
- An Impulsive Move higher has carried the share-index above the resistance of the previous high at 5750 initiating a change in trend.
- The share-price is now at a resistance level at 5850. If penetrated it is likely that the index will trade in the previously established Zone B.
The company reporting season of February/March is now not far off, and of course Australia is hugely influenced by the continuing vagaries of the US market, but so far so good!
Categories: Chart Review