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The XAO had a big fall on Friday and closed below a level of support – suggesting a continued fall to 7,470 (or beyond is potentially possible). With the index making lower weekly troughs and peaks it all feels a bit ominous.

Neither the larger market or many of the underlying stocks give me much confidence of next week being positive. However, perhaps bargain hunters will see the market as cheap and push prices up. I gather the US market was closed Thursday and the absence of their buyers has been suggested as one reason for the selling frenzy here today. The other elephant in the room is the escalating Covid infections in Europe and a new radically different Covid variant in South Africa (also detected in Japan I think I read). And you thought lockdowns were over..........

Given the uncertainty in the market I am not revising my Stocks to Watch this week.

There’s little a trader can do except manage his open trades and pay a close watch to stop losses. 

Contact

Robert Norman

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

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