Vanilla XJO Thread, page-51

20 Leaders Weekly Wrap - week ended 17/1/25

VLC20 Leaders ETF Daily Chart.

VLC was up modestly 0.58% this week.

20 Leaders (Large Caps) are in a consolidation pattern.

Friday saw the VLC fall -0.38%. It formed a bearish engulfing pattern and fell a little below the mid-line (20-Day SMA) of the Bollinger Bands.

The lower level of the consolidation is at 82.38. The upper level is at 84.87. VLC finished on Friday at 83.21. That's more or less in the middle of the Consolidation. That's about as indecisive as a chart can get.

20 Leaders individual stock performances.

The constiuents of the 20 Leaders are fairly evenly divided between winners and losers.

8 stocks were up this week, with one flat (IAG). Eleven stocks were down, but three of those were only down marginally -MQG -0.05%, SUN -0.12% and RIO -0.25%.

Best performers for the week were: TCL +2.37, S32 +2.35% and WDS +1.94%. WDS has had a great run, but now looks ready for a pull-back. It might become a buying proposition in the near future, but currently it looks to overbought for my money.

The worst performers were CSL -3.52%, BXB -2.37% and Wesfarmers -2.09%

Changes in Relative Strength

The stand-out in this chart is S32 which has sharply improved its relative strength status this week.

Other improvers have only made marginal gains, but the surprise amongst that group is ANZ. ANZ's improvement is in stark contrast to the other three big banks, where their relative strength fell this week.

CSL, BXB and WES were all very week and might be worth a look from a contrarian point of view.

CSL

CSL had a poor week but it is now back to support where it picked up on heavy volume.

The past two days have seen heavy volume coming into to CSL so it might be ready for a move back to the upside.

BXB

BXB also had a poor week, after being one of the better performers amongst the Large Caps. It is now back down to the lower Bollinger Band and has had a small bounce. It might be ready to move back up to horizontal resistance at 19.60. It finished at 18.96.

Unlike CSL I don't see higher volumes flowing into BXB so I feel less confident about it.

WES

On Friday 20 December, WES had what looked like a climactic sell-off on heavy volume. That often initiates a new trend.

Since then, WES has had small movements on lowish volume and seems to be stuck in a sideways consolidation.

WES is in the Discretionary Sector which tends to be interest rate sensitive. If the market sniffs a drop in interest rates, we could see a strong rebound in WES.

Both CBA and ANZ are tipping an interest rate drop at the RBA's next meeting on 17/18 February.

The market tends to be forward looking so we could see a move up in WES in the near future if the possibility of a Rate Cut gets firmed up.

That's all for this week.

Take care.