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With the XAO down 1.1% for the week it has now fallen for 3 weeks in a row with the last 2 of those closing below an uptrend line – which is a formal sell signal. If the XAO falls below 5,992 then it will have made a lower weekly trough and if this is followed by a lower peak, it is starting to look like a more sustained rout might be on the horizon. A fall to 6,000 or even 5,400 is possible, but as said previously my favoured view is that prices will push up to 6,800 or 7,200. Perhaps the road map ahead is a pull back and then a move up – but it's not a time to panic.

This week I bought TCL, perhaps a little prematurely because, despite losing some ground this week it has made two consecutive closes above a weekly downtrend – which is a buy signal. I also bought CSR which I commented on last week and my trade remains in profit (but only just) in spite of an adverse week.

I sold RED for a small profit as it hadn’t performed as hoped.

A few stocks I am watching are building potential tradeable patterns. Long-term trade potentials are WOR, OZL and ORI, while short-term trades might come from the likes of NUH, COH, BLD & SGM.

Contact

Robert Norman

Phone: 0428 346 951
Email: robert@sharecharting.com.au

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