My view and analysis is The XAO has NOT proven that its broken out of its downtrend yet. I continue to see lower highs and the Trend does not look to have changed as of yet. In a previous accumulation Period which was similar I could see the pattern was also different to this one. I think we are in different waters here and the outcome is still waiting to play...
For the 1st time since February 2020, the All Ordinaries Index (XAO) has closed lower for 5 consecutive days. The February 2020 episode didn't end well. However, one swallow does not a summer make.
Since 2000, XAO has fallen for 5 Consecutive Days (up or unchanged day followed by 5 down days) on 60 occasions. Following this weakness, XAO managed an average...
Technical indicators are pointing towards a possible near term correction.
SP trading within a long term bearish ascending wedge pattern. (purple)
Short term bearish descending triangle forming. (red)
MACD showing bearish convergence. (white)
Shooting star candlestick shows excessive selling pressure.
Odds are in the favour of the bears.
Daily not looking good for the asx all ords, but if monday the stock market bounces to the green, we could see a weekly reversal in favour of the bulls. Weekly chart shows a reversal doji i feel, but only time will tell.
Not many winners out there this week, lets see how next week goes.
Mapping out the exact waves in this ending diagonal in the Australian Stock Exchange.
Wave v is breaking back into the AriasWave pitchfork channel and will soon retest in Wave E of Wave (B) of this Expanding Type-2 Zig-Zag.
Once the final high is made just above the purple line and then dips back below it this should indicate a top.
Once it breaks back down and...
High risk in markets at the moment.
Fundamentals don't support the current recovery
(although we know it doesn't have to).
Watch this zone, if price falls below
could be the start of a larger pullback.
The overall market has been extremely bullish in the later part of 2020, however, MACD bearish divergence is starting to present.
I'm thinking that this suggests that the trend may slow leading into 2021 or a bearish move is on the cards at some point. Will watch closely.
A similar divergence persisted in 2019 and into early 2020 which resulted in the bearish...
The broad ASX All Ordinaries Index (XAO), since the beginning of November 2020, shows the underperformance of previously overperforming Midcap (XMD) sectors of Information Technology (XIJ - note particularly the high flyer Afterpay APT) - and Mining (XMM) to a lesser extent.
This market just needs to make one more all time high to complete 5 Waves up since 1900.
Cycle Wave 1 1900 - 1913
Cycle Wave 2 1913 - 1920
Cycle Wave 3 1920 - 1967
Cycle Wave 4 1967 - 2009
Cycle Wave 5 2009 - 2020\2021
Alternation between Wave 2 and 4:
Wave 2 shallow sideways and short in duration.
Wave 4 expanded to the upside and long in duration.
Been speaking about this Index Heavily, this movement is to be expected & I’ll explain why.
- This Demand Zone that we are moving through today was a 4H Demand Zone, it was Low Quality, meaning there is levels underneath it that are formed on Market Pivots, which yield Higher Quality Demand Zones
- There are a number of Levels in the way of the Main Demand Zone...