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.

Friday, February 25, 2011

Strong bounce off support

In my last post I mentioned that $52.40 was my guess for where the decline from the recent high would find support. Well the price duly found its way down to $52.38 this morning and then bounced off it strongly. A lower low next week would of course not be out of the question but it is looking increasingly unlikely. If the price rallies from here, the question is how far will it go in the short term. My guess is that $56 is the minimum target but it might struggle to go much further than that in the short term and it could take most of March to get there. Here's an updated chart.


Click chart to enlarge













This chart shows the CBA share price finding support at the trendline today. Click chart to enlarge
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