wednesday the simple things, page-18

Apparently, there’s been a problem with my charts. They are no longer “clickable” to get a larger image. The up-load facility on WordPress has recently changed. And I haven’t been able to up-load charts the way I was. So today I’ve resorted to uploading full size charts. That’s not a solution as it takes up too much room on the blog. I’ll try to rectify this when I get to understand WordPress’s new system. My apologies for any inconvenience.

In Australia:

Twenty Leaders +0.4%
50 Leaders +0.4%
XJO +0.4%
XAO (All Ords) +0.4%
Small Ordinaries -0.0%
Financials +0.4%
Materials +0.2%
Consumer Staples +0.3%
Energy +0.4%
Health -0.6%
Telecoms +1%
Consumer Discretionary +0.5%

Comment: A narrow range day. 20-Day Relative Volume was on average. Today was a seesaw day: up, down, up. Not a lot of direction.

Technical Comment on the ASX200:
The XJO finished at 4520.4. S/R:4438/4516. Marginally back above resistance.
Indicators:
Stochastic: 90.2. Overbought. Still above its signal line.
RSI: 65.7. Below 70 and below its uptrend line. In a zone where risk is to the downside.
MACD Histogram. Marginally above zero. Neutral.
MACD: Above zero. Positive.
CCI: +101.7. Overbought.
One Indicator has registered a “sell” signal, the RSI. We need four indicators to give “sells” to get consensus.

Today’s action suggests we’re in a consolidation phase. A big down day would ruin that thesis. This might last another day or two. But the next move looks likely to be a continuation of the trend, i.e., up.

I thought on the weekend that we might see a top in CBA. Yesterday we had a hypodermic needle – which suggests the stock had peaked. It needed confirmation of a big day down. We didn’t get it. Today we had another big up day. It’s possible that it’s a “tweezer top”, but again we have to see now tomorrow plays out. At this stage, there’s not enough information to say that CBA is a “sell”. Wait. It might just take a breather before the next move up.

Redbacka