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After two short trading weeks and a market with little direction there’s not much worthy of reporting, so I thought I'd have a look at what 2021 might have in store.

it’s interesting to look at an annual chart of the XAO.

XAO annual candle

First the candle for the last year says it all – it stands out from previous years with its huge range (meaning it's been a year of extremes - which is stating the obvious) and closing almost where it opened. In Candlestick Theory a candle that opens and closes at around the same price is called a Doji and it signifies market indecision – which maybe sums up where we are at right now.

If we change to a line chart of the yearly closing prices it suggests each time price rises to the top of that shaded channel it is followed by a fall back to around the average increase in value of the XAO – shown by the blue dashed line. If this theory holds then it means prices could could close lower at the end of 2021 - it says nothing about where prices might go for the other 364 days.

XAO annual line

I’ve updated my Stocks to Watch page I’ve removed 4 stocks because their price has pulled back and as a result they show less potential. One new stock has been added –OBL.  Interestingly, MLX which I listed 2 weeks ago rose 12% this week following a 19% increase after being featured in Stocks to Watch.

Here’s wishing everyone a prosperous 2021!

Contact

Robert Norman

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

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