Make A Motza Week, page-6

Three-Day Reversal. Postprandials, Monday, 24 November, 2014

XJO up +1.1% on modest volume – which is OK early in the trend.



This shows a three-candle reversal pattern with a “morning star” in the middle. This has a nearly 80% reliability rating (see Bulkowski). It is one of my favourite reversal signals. Coming at the end of a serious down thrust, I couldn’t want for much better. Of course – there is always a risk. But this looks good.

RSI.9 has turned up from below 30 to above 30 – again that’s a good sign.

The sectors most vulnerable to the China economy did best today – Miners (+3.9%) and Energy (+2.5%). Telecoms and Consumer Discretionary were both flat. Financials were just luke warm, +0.4%.

The big Asians did well today. Shanghai +1.89%. Japan +1.95%

At this stage, it looks good.

Redbacka