Wine Friday, page-3

XJO flat today +0.08%.


That bland statement “XJO flat today” hides a huge amount of information.

That’s the sort of statement we here on TV and other media outlets.

But have a look at today’s candle.  It’s coming at a relatively long, short-term down trend.  The candle is a “hammer” – which often comes at the end of a down-trend.  It’s not far off the 50-Day MA – a logical support level.

We’re starting to see some bullish activity come into the market.  Today may not be the end of this pull-back, but it is getting close.

I talked a little about the banks today – and suggested we look at some intra-day buying. Let’s have a look at the four big banks:

CBA:



CBA has been in a downtrend from early January.

Today’s candle is a doji which occurs at a major support level.

MFI is at an exceptionally level (below 20).  Below 20 is very rare.

Odds favour a move up.

ANZ:



ANZ is the best performer of the four big banks.  It shows a “hammer” candle at the support of the 50-Day MA.  That’s one of the key Moving Averages.

A bounce from here would be bullish.

NAB:



NAB is the weakest of the four big banks.  MFI is at the ZERO level for the second day in a row.  Readings at ZERO are very rare – and usually result in a rapid response to the upside.

Today it fell below the Standard Error Channel, but intra-day buying took it well above its opening price.  NAB holders should take some comfort from that action at this very low level.

WBC:



Westpac had one of the best intra-day performances today.  It opened at 28.25 but finished at 28.46.   That’s a rise of 0.84%.  Not bad.

That has occurred at a major support level.

The action of the banks today is promising.  It confirms my idea that we’d see intra-day buying today in the banks.

We need to see continuation to the upside to confirm that the banks are on recovery.

RB