Maybe. Could be. Might be. Thursday Postprandials. 26 February,...

Maybe. Could be. Might be. Thursday Postprandials. 26 February, 2015

XJO down -0.61%. That breaks a run of three days up. That's about par for the course. The range today was the widest we've seen in the past five days. So, maybe, could be, we just might be starting an acceleration to the downside.

Here's the XJO chart:



Today's candle is a bearish engulfing candle. Does it matter much that the past few days have been narrow range days, and today's range is only just a little bigger? I dunno. This could still be part of a consolidation process.

The chart has also dipped marginally into the dark yellow Bollinger Bands (20/1). MACD Histogram has gone negative. All indicators are pointing down.

So .... the loss of momentum in the past few days has now translated into a minor move to the downside. You know the snowball effect. That could be what we'll see here. We'll only know in retrospect.

But - let's have a look at the Financials X-Property. I've been suggesting that this is the essential link in the Australian market:



Today's action looks suspiciously like a standard three day reversal pattern - which is fairly reliable. But the action has been such narrow range - we have to withhold judgement. Until the lower edge of the horizontal consolidation area marked on the chart is broken to the downside - it's best to presume that this is more consolidation action.

Telstra has a habit of going into a blue funk after ex-dividend day (that was yesterday). This looks like history repeating.



Today's action shows up as being oversold on the indicators, and the chart is back to the 50-Day Moving Average. Some sort of upside reaction is likely here. Just how good that will be is another matter. I think we'll see more downside in Telstra in the medium term. I'll be happy to be proven wrong.

Here's another stock loved by the Mums and Dads. WOW. It reports tomorrow:



WOW has had a good run up from the lower end of the bullish falling wedge noted in mid-December.

It is now overbought. It gave back a bit today. Yesterday it hit overhead resistance and retreated.

The report tomorrow will have to be received very favourably to overcome the current overbought conditions. But anything is possible.

Tomorrow should be interesting. (Isn't it always?)

I won't put up the Gold Miners Chart today - just report that it remains in a tight sideways consolidation. I'm waiting for a break one way or the other.

Redbacka.