hctv presents rocky monday, page-61

In Australia:

Twenty Leaders –.05%
50 Leaders -0.5%
XJO -0.5%
Small Ordinaries -0.7%
Financials -0.2%
Materials -1.3%
Consumer Staples -0.2%
Energy -1%
Health +0.7%

Comment: A moderate day down on lower than average volume. The XJO was well down in early trade, picked up in mid-session than drifted to the end. The action from mid-day to close of trade looks like a bear flag. Once again, the best performer was a defensive (Health).

Technical Comment on the ASX200:
The XJO finished at 4409.2. Support resistance: 4278.3/4437.7.
Indicators:
Stochastic: 85. Overbought. Below its signal line. Needs to fall below 80.
RSI: 55.6. Positive but falling below its up trend line.
MACD Histogram. Marginally below zero. Neutral.
MACD: Marginally above zero. Neutral.
CCI: +52.6. Falling below +100

The medium term trend is up. The short term trend is down.

Today’s action was bearish. The rising wedge was clearly broken to the down side. Indicators are pointing down. A break by the Stochastic below 80 would be a compelling sell signal. Stochastic is often late to the party – so it’s not looking great. The only thing going for the bulls today was the light volume. But that often happens in the first day of a break in trend. Let’s see if we get follow through selling on heavier volume.

Redbacka