Yesterday, Woolworths broke marginally above recent horizontal resistance. Indicators (MACD, RSI, W%R) are all positive. The 150-Day SMA lies just ahead around the 27.00. That area is also an area of solid horizontal resistance. WOW might struggle to get above that area after its recent good run. But - the trend is up.The past three days have been indecisive ones for CSL . Friday was a long-legged doji, or rickshaw man. The balance between bulls and bears was even. Monday saw a black candle inside the range of the previous candle. Another day of indecision with the balance going slightly to the bears. Yesterday saw a small star doji inside the previous days range. That's another day of indecision. Usually such a pattern resolves clearly one way or the other to give near-term direction. Looking at the short-term hourly chart, the action has taken place well below the 65-Period SMA. It needs to clear that first before any upward momentum can be generated. CSL remains within a longterm sideways trend. It needs to get above 34.00 to break out of that trend. Short term it can go either way - and still remain within the sideways movement. Patience is required.
BHP needs to break above 40.40 and the 65-Period Moving Average on the daily chart to be a chance of establishing a new uptrend. Yesterday it closed at 40.20, not far away. And BHP can move very quickly, so a strong day today should see further upward movement by BHP.
Remember, the above thoughts are merely the ramblings of an elderly chartist trying to make sense of a chaotic environment. Always do your own research, and professional financial advisers are available for consultation.
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