hctv presents life of investors monday, page-52

In Australia:

XJO +1.4%
Twenty Leaders +1.4%
50 Leaders +1.4%
Financials +1.1%
Materials +2.3%
Small Ordinaries +1.7%
Comment: A very strong day, on relatively low volume (95% of the 5-Day Average). I said in Friday night’s report that we could expect a test of Thursday’s high. Well, we got a bit above that today, but still didn’t pierce the down trend line from 7 February. Today’s early rise caught a lot napping (reaction to China’s announcement about monetary easing). A short squeeze ensued and up she went. After the initial rise, it was basically sideways. Today’s rise was particularly impressive given that both Comm Bank and Telstra went ex-dividend today. They are two major stocks. These caused a bit of a drag on today’s performance.

Today’s trading was marked by unusual spikes up and down. I haven’t seen anything like it previously in the Australian market. Something very odd was going on – and I haven’t seen a reasonable explanation for it yet. We very occasionally see a little spike one way or another – usually as a result of some computer operator error. But to get them consistently throughout the day???? The drop and bounce back at around 3.10 was a particularly big variation. No doubt something will surface giving us a reason – but in the meantime ……..

Technical Comment on the ASX200:

The XJO finished at 4256.1. Today’s candle straddles the 9-Day and 18-Day MAs and just below the 150-Day Moving Average.
Indicators:
Stochastic: 29. Marginally above its signal line. Positive.
RSI.9 is at 52.9. Above 50. Positive.
MACD Histogram. Marginally below Zero. Neutral.
MACD. Below Zero. Negative.
CCI.14: -55.5. Into the neutral zone. Waiting for a rise above zero.

The chart pattern is looking like a bull flag. A break above the upper restraining line of the flag would be a positive. But a lot of resistance lies ahead. In the medium/long term, I still wouldn’t be confident until the zone around 4300/4350 is cleared to the upside.

Redbacka