Harmonic Chart Patterns of XJO and Stocks - Weekend...

Harmonic Chart Patterns of XJO and Stocks - Weekend Report
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First, a look at the overall market from the aspect of harmonic patterns and ratios of the XJO as a proxy to the broad market, since the overall market will affect trading sentiment of individual stocks.

Harmonic Charts of XJO
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From the daily chart, we see the completion of the ideal Bat pattern once the harmonic ratios and targets were achieved. Last week, we also saw the Tri-Star doji formation on the XJO denoting indecision and a tendency to bearishness. We saw that resolved into a pullback. This is as shown on the chart below. The Bat pattern is edged in pink. Below the price chart is the stochastics indicator chart, for each chart shown.



With the pullback in progress, has the pullback reached any harmonic levels? Is there support?

Below is another chart of the XJO with the later portion of the chart blown up to show in greater detail. We find the closing index of the XJO to have fallen to a convergence of two levels arising from two harmonic ratios. This is as marked on the chart below. Note the presence of the 3 dojis at the apex B, indicating the Tri-Star doji formation discussed above.



This does not mean there is going to be support at this level. This convergence has no forecasting features or meaning, nor does the convergence suggests there is support. There may or may not be temporary support at this level, though we see a bullish candlestick ( harami ) at the week's close. We also see that the stochastics has also fallen to enter the oversold region, although there is no re-hook sighted as yet. Perhaps these two factors might help to provide support, but we really do not know.

There are some who do believe in gaps, and are watching gaps below the current XJO reading to be filled-perhaps not immediately, but given time these gaps are worth watching. So I'm attaching a chart of the XJO with existing gaps to be filled, just below the current index reading of the XJO. You can read the levels of the gaps from off the axis from the chart below.



Finally, and as usual for each weekly update, we'll take a look at a single stock in the ASX displaying a harmonic chart pattern.

Harmonic Pattern of an ASX Stock
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Last week we looked at AOK with a yet to be completed pattern. This week, we'll look at a stock which has fallen to a convergence of two levels from two harmonic ratios and a potential completion of a harmonic pattern. The stock is CCB, and for those interested in tracking penny stocks, this may be worth watching over the soon coming sessions. We also note a positive divergence between the stochastics and the price, though stochastics has dipped slightly on Friday's close. We note that while price has been dipping, the stochastics indicator has been moving higher with higher highs and higher lows, indicating the positive divergence.



I hope these harmonic charts will be somewhat useful to you. Trade well, trade safe for the week. May the best prices be yours this week.

dascore