1. A break of the RSI down trend line would be an initial buy signal.
2. A cross by the RSI above 50 would be an “add” signal.
3. A cross by the MACD above its signal line and then above its zero line would be a further “add” signals.
The first of these buy has been met.
The Williams %R has also broken above the resistance line shown on the chart - confirming the first buy signal.
The chart of the Advance/Decline Line showed a positive divergence from the XAO as of Friday. This suggested that the current down trend was just a pull-back in an ongoing bull-market. If this pullback was to end the bull market, I'd expect the A/D Line to have broken below the February Low. It was a long way from doing that.
The upward movement today on the XAO (2.5%) on good volume was suitably strong enough to suggest, in my opinion, that the current pullback is over.
I'll look at further statistics as the night progresses, and if anything contrary occurs in the statistics, I'll post a further comment tonight.
Otherwise, that's it for today.
Cheers
Red
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