S&P/ASX Index of Australian Listed Shares Analysis 11/11/14

FX:AUS200   S&P/ASX index of Australian listed shares
31 0 0
Long term trend: Up
Medium term trend: Up
Significant levels: 5640 (Horizontal Resistance), 5370 (Horizontal Support)

This index has clearly gained its strength. The recent up move is so steep. Currently, the price is making a small consolidation area which indicates that the strong move up cannot be sustained for an extensive period of time. What we're looking here to trade is for the price to go down a bit, preferably back down to 5370 before continuing its trend. We could also trade the pennant that formed and place a Long trade now before the price continues to go up. This pennant , as a continuation pattern could also be used as a benchmark on where the price will go in the next candlesticks that will form. If the price broke above this pennant , the continuation pattern is a success and the Long trade would be appropriate. But if the price broke below the pennant , we could see a much better opportunity to go Long and that is to place that trade near the Support line. That would give us a much better position to place our trade. Either way, we are going to place a Buy trade and we'll not go against the trend.

Trade well.
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