Summary for today's action.The XAO was up a little today...

Summary for today's action.

The XAO was up a little today 0.2%

Other major indices today:

XTL (Twenty Leaders) +0.4%
XFL (Fifty Leaders) +0.4%
XFJ (Financials) +0.4%
XMJ (Materials) +0.3%
XSO (Small Ordinaries) -0.6%

Technical Comment on the ASX200 Market:
The Index is below 50-Day MA and the 13-Day MA. Negative.

Indicators:
Slow Stochastic 14.8 and rising (very gently). Oversold but a positive
divergence to the index.
The 13-Day MA is below the 50-Day MA. Negative
RSI below its mid-line, now 40.3. This is an area where a reversal can be
expected - but needs to rise above 50 to prove itself. On the other hand
it could easily go lower.
MACD Histogram below Zero. Negative. But off its recent lows. Positive
MACD below the Zero line. Negative
CCI -118.5 . It needs to rise above -100 for a buy signal. It's currently
hovering around the -100 line.

In general those indicators are showing a slight positive divergence to the chart action.

Of more interest is the fact that the recent rise in the Index from mid March took nineteen days. Trading since then has been nineteen days and the index has retraced about 2/3 of that rise. There's an imbalance in time/price - with the bulls having an edge.

In the 50-Leaders the ratio for Advancers and Decliners was 3.5:1 - bullish. The A/D Ratio for the general market was 0.9:1 - mildly bearish.

There's a bit of weakness in the underlying buying. Notice that the Small Ordinaries were weak at -0.6%

The last two candles (big down day followed by a "hang man" candle) set up the market for a reversal upwards. It needs a big up day to complete the pattern.

I haven't shown this on the chart - but the index is developing a down-sloping wedge. That's usually a bullish pattern.

Amalgamating all of that - I think this market is at or close to a medium term bottom.

Formidable resistance lies overhead.

Good luck
Redb