jgunter's - shorts bbq - thursday, page-124

XJO (ASX200) +1%
XTL (Twenty Leaders) +0.8%
XFL (Fifty Leaders) +0.9%
XFJ (Financials) +0.6%
XMJ (Materials) +1.9%
Energy +1.1%
XSO (Small Ordinaries) +0.6%

Comment: Another see-saw day. Up early, sold off, then up in the afternoon. The market finished quite well, up about 1%. Compared to last week, volume remains light. Volume today was about 90% of the 10-Day Average, and 83% of the 50-Day Average.

Sometimes the market is a mystery to me. Normally, if the Materials Sector is strong, the Small Ordinaries Sector is also strong. Not so today. So there’s something going on there which I think doesn’t bode well.

INDICATORS:
RSI.9: 66.5. Positive – getting close to overbought at 70.
MACD (zero-lag) Histogram. Above Zero. Positive but falling. Wouldn’t take much to push it below zero.
MACD (zero-lag). Above Zero. Positive.
Stochastic: 94.2. Overbought.
8-DSMA above the 34-DSMA. Positive.
Directional Movement Histogram – Above zero. But stalling
CCI.14: +116.5. Falling. A break below +100 would be a take-profits signal.
The chart is above both the 8-Day and 34-Day MA. Positive. And above the 50-DMA. All good.

The XJO closed at 4244.5. Support lies at around 4200, 4160, 4040. Resistance around 4300.

For the time being, I’ll play the support/resistance game. The trend is up – while support holds at 4200 it looks OK. A break above 4300 would confirm a new bull market. Currently, the market looks to be consolidating above 4200.

The market is ripe for a pull-back (see indicators above) – but we could see it hit 4300 on the XJO before selling kicks in.

Good luck
Redbacka