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This week the XAO broke convincingly above the resistance that has been keeping it rangebound for weeks. It then fell back to retest said resistance before closing a little higher. This week’s candle was a doji and while a doji should ideally open and close at the same price and as such have no body, ours has a small body. However, I’m still treating it as a doji which is considered a reversal candle because it shows indecision in the market which can lead to a pullback. Personally, I’m sticking with the theory that the break above resistance will lead to higher prices ahead. Reporting season is predicted to show strong results, and if that proves to be true it should light a fire under prices. However, we remain at a market high and the time for a pullback draws ever closer so conflicting pressures on prices continue.

XAO 30Jul21

While the XAO closed flat it was a fairly good week again for me as my portfolio moved up 1.1% for the week, aided in no small part by LYC which rose 14%. I also closed out a trace in ECX for a 15% profit after a spike this week. I’ll continue to watch this stock as I feel it will go higher but could first retrace a little. Gold finally moved up a little taking my NST and NCM trades with it, but regretfully EVN sits stubbornly on the launch pad. CUV again fell away and 50% of the trade was sold after a stoploss break on the daily chart.

My Stocks to Watch were a mixed bag with small moves apart from LYC and ECX as noted above and SLR, which fell back 5.0%. I've removed ECX because I think it has had its run for now, but remains one to keep an eye on. I need to spend some more time reviewing potential trades and will update Stocks to Watch later. Anyone interested should check back Monday.

Contact

Robert Norman

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

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