Aug Charts

Daily 25 Aug
Positives
Stoch 5 is in the bullish zone above 50
Stoch 14 is above its sig line & rising
Histogram is above zero & rising
MACD is above its sig line.

Negatives
Stoch 14 is in the bearish zone below 50
Stoch 5 has turned down & has returned to the sig line
The tentative recovery has occurred on decreasingly lower vol
My daily models show downside alerts

Outlook
With the vol. remaining low & some negative aspects of the indicators it looks like momentum may be stalling in the short term.
I expect therefore to see a dip or at least a pause over the next bar or two.
The overall aspect for the daily at this stage looks relatively positive but the sp has / is approaching a resistance zone from 26 – 28.
A move through there with an increase in vol would see the next resistance around 33 – 35.
Any recovery though will take time & the sp will need to convincingly clear 35 – 40 before any confidence can be had that the BEOT is ready to mark up the sp & perhaps start taking some profits on their short positions.

Support should be around 22 – 23 & initial resistance is 25 – 28.

Weekly
Positives
Stoch 14 has crossed above the sig line & has risen slightly
Histogram is slightly higher than the prev week.

Negatives
MACD is still trending down
Histogram is below zero
Stoch 14 is in the oversold area
The small recovery was on very low vol

Outlook
Like the daily, we look to have reached a resistance area & given the negative aspects on the daily I would expect the resistance to hold up initially but the weekly is showing early signs of a potential move back into the 22 – 35 range.
My weekly models show multiple upside alerts so I would expect to see an attempt to move up through the resistance by the weeks end & a higher high on the next candle. Whether that eventuates or is sustainable remains to be seen.
Volume is a problem though & last week’s vol was less than half the prev week & a modest 1,607,039 net buying for a change
Shorter’s are still playing but did not have that much impact as usual.
There has been some short covering the prev week, from 52,473,750 the prev week, down to 46,958,655
Mon. There has not been anywhere near enough vol last week to think that there is a major shift in the shorts at this stage.
Weekly support is 22 – 23 & resistance 25 – 28
It is nearly 3 years since the permit was first submitted.
Pathetic.