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.
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.
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!