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While the past 2 weeks have seen a 2.4% improvement in the XAO, price is just below significant overhead resistance which could see price fall – potentially around 2.2% to 7200 (or lower if it breaks 7150). Interestingly, this weeks high was right on the upper boundary of the large shaded price channel on my chart. The price is also right on a possible new downtrend that may be forming (the red dashed line). Price has held below this possible downtrend for 9 weeks. Put another way – price is currently at the confluence of two overhead resistance levels and I have to think price will again fall next week. The short solid black line marks the trajectory of where price could go if it manages to break higher. A break above these resistance levels would be a strong signal that prices could rally back towards 8,200 (but possibly wishful thinking on my part given the strong headwinds).

XAO 15Oct2021

My own trading has seen gains in line with the XAO. NMT (up 14.6%) was my best performer with ABR coming in second at 11.1%. LYC also put on 6.8%. During the week I bought into and then subsequently topped up one of my old favourites, SGM, which ended the week up 9.9% - not that I saw all of that. The rest of my trades fell back, but not by large amounts. I sold SXY for a profit during the week – seemingly at the right time as it has pulled back a bit since then.

Last weeks Stocks to Watch mainly fell a little with SLR being the stand out performer, being up 10.3%. This week I have removed TLS as it seems to be rolling over and may fall further before rising. I’ve added OZL and NCM.

Fingers crossed for another good outcome next week.


Robert Norman

Phone: 0428 346 951

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