Hi friends,
In monitoring the XJO via its dynamic cycles, it is also possible to look out for impending signs of a temporary peak or bottom in its price movements.
In the case of the XJO, historically it shows its hand earlier by displaying signs of divergence between its price and a swing oscillator based on a smoothened RSI.
As you can see from the chart of the XJO updated to today's (Thurs) close, I have marked down 8 divergences between the XJO and the smoothened RSI oscillator, each time leading up to a Change in trend(CIT)(either a temporary top or bottom ).
As at today, you can see the initial signs of divergence between the price and the RSI oscillator again (marked with arrows identified with the alphabet I), giving early implications that there is the possibility of the CIT occurring soon.
As we have had discussed since the start of this thread, that cycle top or temporary peak is likely to move within the gann vibration number of 49 ( which is 7 times 7=49, 7 being the fatal number) ie. 49 days from the immediate peak of 17th Feb 2011, pegging a projected date of 7th April, which coincides with the projected cycle top chord length of either the 7th or 8th April ( 9th being a saturday).
In any case, irregardless of the date, we do know that the divergence is starting and will build up to a change in trend soon....so we can get some technical guidance on trade maintenance of stocks we hold, moving into that time window.
Once again, forecasts and projections are never cast in stone, and my simple charts and analysis is solely made for entertainment purposes and has zero trading value. We are talking about possibilities, not guarantees. Also note, if you like to have serious analysis of the XJO, please refer to the XJO by stock forum where there is more detailed discussion over there. Cheers!
Trade well, trade safe...and happy weekend!
dascore
PS. To Lighthouse - thanks for the EOD data for the US dollar index, and will post an analysis over the weekend:)
Hi friends,In monitoring the XJO via its dynamic cycles, it is...
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Last
7,829.7 |
Change
66.500(0.86%) |
Mkt cap ! n/a | |||
| Open | High | Low |
| 7,763.2 | 7,832.3 | 7,763.2 |
| XJO (ASX) Chart |