Weekly Blog

This week the XAO continued its tight range-bound sideways action that has seen it little changed for 8 weeks. Price has formed a possible price channel where this week’s low of Friday is sitting right on the lower boundary. It will be interesting to see if price falls down out of that channel next week to form a correction (~10% fall). My suspicion is that prices will rise again next week to continue the sideways action. That would probably see the run of higher peaks and troughs continue and price ultimately break higher. In short – no clear picture where price will head when the sideways action stops.

No buys this week given the unsettled market, however, NCM was sold for a profit (Click on stock to see details).

Weekly Blog

The XAO still refuses to move either way, opening and closing at the same level  this week – making a doji right on the lower boundary of a long term price channel. The doji could signal a reversal in price next week, something that could see the XAO break down out of that channel for the first time since April. This doesn’t mean further falls are ahead because (a) it might not break lower, and (b) if it does it may recover quickly and move back up towards the upper price channel boundary around 7000/7200. The market is looking for some good news on the virus front and as long as infections remain high it is hard to see investors pushing prices higher.

No buys this week in light of the potential for the market to retrace, although a number of potential opportunities were passed over.

FMG was sold for a profit after only being purchased last week. Click on company name for details.

 

Weekly Blog

The XAO had a sixth week of sideways action in a narrow range with no indication which way it will ultimately break.

This week did provide an opportunity to buy into trades on BHP and FMG (Click on company names for more detail).

Weekly Blog

Alas the promising spike in the XAO was short-lived and prices retraced back to the lower boundary of the channel shown a couple of weeks ago (chart here). However, price hasn’t made a lower weekly low so we live in hope. The weekly candle is a Harami suggesting prices could go lower next week. The market remains undecided with no significant weekly move for 5 weeks.

During the week I bought MSB and closed out a trade on EOS.

Weekly Blog

The XAO rose convincingly this week although Friday made a reversal candle – suggesting next week could open lower. Price broke above 6125 making a higher high after a lower low, a very positive. signal suggesting price is now more likely to rise than fall. However, the outlook remains unclear because of virus concerns. My view is price will go higher but expect regular retracements along the way. As noted in previous weeks, if price can break the previous high around 6311, then 7000 is on the cards.

No buy or sells this week.

Contact

Robert Norman

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

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