Follow us on our Journey

Friday the 13th turned out to be luck for the ASX but overall the health sector was the only sector to rise with gold down 8.7% and IT down 6.7%. Gold seems to be a lost cause of late with the US$ strengthening (although it is hard to see why that is happening given the US economic outlook is less than rosy).

Last week I said I’d leave my Stocks to Watch listing as it was until this week in the hope the market had settled. It hasn’t. But looking at my listed stocks, only PME and BPT have charts that suggest prices could rise. The other stocks have all made lower weekly lows and/or broken below trend. Yes, they could come back, but their charts no longer suggest that is assured.

As for new listings – DOW has broken above a downtrend (just), ILU has bounced up off a price channel lower boundary (as has LYC), SGM has bounced up off a level of strong support, TPG has broken above a downtrend (as have CGF and CSL) and ORG seems to be turning into a good long term hold with price continuing to rise strongly after breaking above a downtrend mid last year. I haven’t had time to post chart analysis on these 8 new listing but will attempt to do so over the next few days.

Over the past 4 weeks the XAO has fallen 9.6% - near enough to 10% to be called a technical correction and only 3 months since our last correction. I can’t remember seeing two corrections so close together and it is an indication of the difficult economic times the world is currently facing.

While prices fell through a level of support this week (the lower boundary of a small price channel) the week closed well off its lows, giving hope that prices will continue higher next week - but in this market it would be a brave person who made a firm prediction about market direction.

Good luck and keep watching those stop losses.

Contact

Robert Norman

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

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