XAO Indicator

This blog is intended to be read in conjunction with the XAO Indicator which can be found at http://www.asxindicator.blogspot.com/

I am not a financial adviser so you should not take any part of this blog as being financial advice. Observing and interpreting charts is a hobby and so is this blog. The information in this blog is just my opinion, it may not reflect reality. Stock market investing is risky - you can lose all, or potentially more than all of your money given certain market conditions. Not only can lose a lot of money buying shares, you can also lose a lot of potential profits by selling shares at the wrong time. So please do not buy or sell shares because of information in this blog. Whether you buy or sell shares is your decision as is the decision when to buy and sell. Do not risk any money you cannot afford to lose. Do not risk any money if you do not fully know and understand what you are doing.

Thursday, February 10, 2011

CBA has further to run

Elliott Wave enthusiasts will not be surprised to see CBA's share price finally moving upward. On the weekly chart CBA has been in a 4th wave correction since April 2010. It looks like the share price has now broken out. On an EW analysis, the minimum target on the weekly chart is the all-time high of $62-$63, but $67 to $72 is not an unreasonable target zone. Below are 2 charts, one shows the EW count and targets and the other shows my trading system which gave a buy signal on 19 January 2011. The vertical blue and red lines on the second chart show the days the XAO Indicator changes from red to blue and vice-versa. (Disclosure: I don't own shares in CBA but I do own call options).
Click on charts to expand

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