The XAO has been trading in gently rising price channel since June. The break up out of that channel suggests a short term target of 6,800 and potentially 7200. It seems a higher market into the end of the year is a likely outcome. Despite this optimism the elephant in the room remains the economic impact of what appears to be out of control and mutated Covid infections in Europe and elsewhere. Hoever the market thinks several months ahead and will have factored in a vaccine being rolled (or at least started to be rolled out)  by then. The same charting techniques applicable to an individual share are equally applicable to the XAO. Price is in an uptrend, above a weekly uptrend line and making higher troughs and peaks on the weekly chart - all of which are buy signals. Only if price falls back below that black uptrendline for 2 weeks would I say it is time to circle the wagons. But remember - never become complacement where the stock market is concerned.

XAO 20Nov2020

Contact

Robert Norman

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

Sorry, this website uses features that your browser doesn’t support. Upgrade to a newer version of Firefox, Chrome, Safari, or Edge and you’ll be all set.