(Click on the above charts for larger versions.)
Very simple initial comments today. The market is overbought (so what else is new?)
But as the great stock market guru once opined: Overbought can get more overboughter!
RSI is now above 70. The market won't turn down until the RSI turns back down below 70.
The market has been up seven out of the eight last days. That's about as far as a market goes without consolidating or retreating.
The XAO now seems to be in an upsloping channel (see top chart). If we get a drop here it should go back somewhere close to the bottom of the channel - now around 4700.
If the XAO breaks higher, then it's probably going into a blow-off top. Which will end badly.
About three months ago (at the first Brisbance meet-n-greet for investors) I suggested that this bull rally would only finish with a blow-off top. We may be going to see that now.
But - if we get a retracement - then this bull rally will have more legs.
Let's see what the next couple of days will bring.
Just one more point - the Ozzie Dollar is once again rampaging upwards. It's now broken back above the neckline of the Head-n-Shoulders top - so more upside seems likely. In that case - we may be looking at a blow-off top on our market. We shall see.
I'll add more comments later tonight after I do more analysis.
Cheers
Red
No comments:
Post a Comment