wednesday wooses, page-13

Further to my bullish views from yesterday:

I mentioned the confluence of support levels on the XAO at 6200. I should add that yesterday's bullish hammer (biggest hammer since mid-August) occurred right on the 200 day ema.

There is a huge positive divergence on the daily MACD from price.

The Slow Stochastic is in oversold territory. A positive x-over of the Slow Sto is pending a green day on the index today. This x-over would be another early warning of further gains ahead.

A strong white candle today would confirm the reversal signal of the big hammer at support.

If we then get an upward break of the short term down trend line and a positive break of the daily MACD, this will be confirmation of the current (tentative) reversal signals.

XAO then has the possibility of going, medium term, to around 7200.

That's how I see it.

Of course, anything can happen.

Cheers
Red