Lobster Friday, page-2

XJO range traded today and finished down just -0.11%.



XJO remains within the flag formation and today’s doji candle found dual support at the 50-Day EMA and the lower edge of the flag formation.

The short-term trend channel is headed down, and indicators have plenty of room for more downside movement.

I’m neutral until we see a clear break below the flag formation, but the short-term trend channel weights the probabilities to the down-side.

Financials (XXJ) were again a drag on the market, down -0.55%.



We’re seeing some positive divergences on the indicators.  A reversal could be quick and sharp.  But there’s no point in trying to anticipate when that will be.

The banks today:  CBA -1.07%.  ANZ -0.53%.  NAB -0.73%, Westpac -0.47%.

Westpac finished the day as a “tombstone” doji – which might spell the end of this movement down.  A big up-day tomorrow would be positive.

NAB is looking interesting:



We’ve got a tight squeeze on the dual Stochastic indicators.  That often comes before a change in trend.  But theses squeezes can last for some time before breaking.

In favour of a short-term turnaround is the narrow-range candle which appeared today just below major support/resistance.  A strong up-day tomorrow would be bullish.  Wait.

The big news today in the large-caps was Telstra, up +5.07% on heavy volume.  That looks to be a reaction to the news that Huawei has been ruled out of participating in the 5G infrastructure development.  Telstra isn’t beholden to Huawei, but its smaller rivals are.  So Telstra might just have a head start in the 5G race:



This could be a turning point for Telstra.  It’s been in consolidation for about a month.  It has now “crossed the creek”.  Let’s see how it goes once it reaches the 50-Day EMA where it has stalled multiple times in the past.

RB.