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This week it was as if investors had forgotten about the world’s economic headwinds with many shares rising and many building and/or making new buy patterns. The stock market tries to predict the economy several months ahead and perhaps this is a sign of better times to come.

A review of my extended watch list pulled up several new shares that had completed buy patterns of either 2 consecutive weekly closes over a weekly downtrend and/or the more complex resistance break pattern. I’ve decided to only mention confirmed patterns rather than stocks building strong buy patterns – and with so many new players I simply haven’t the time to analyse all of them in detail.

The new potential buy patterns are: XRO, WES, ORI, NXT, JHX, CXO, BRB and ARB. From those I came up with the strongest contenders for my Stocks to Watch listing – NXT, CXO and ARB.

From previously reported patterns the following remain in play – ALU, AXI, CKF, DMP, IEL, IMU, RMD, RWC & TNE. From these IMU and TNE have made it to Stock to Watch (DMP was already listed).

From last weeks list I’ve delisted AD8, PNV and TLX simply because the have reached their initial targets. Last week these three rose 9%, 19% and 20% respectively. Removal from my list doesn’t mean I don’t think they will continue to rise in the medium term, just that their charts suggest they may now fall back a little and consolidate in the short term.

If the XAO was an individual stock it would also have made Stocks to Watch having broken resistance and technically headed for 7,205. However, after 5 positive weeks the law of averages says a week or two of lower prices must be a strong possibility.

Contact

Robert Norman

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

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