XTL 14/15 Dec. Charts, page-4

20 Leaders Weekly Wrap - Week ended 22/11/24.

XTL - Weekly Chart.

XTL was down 0.82% this week, which compares to XJO down -1.48%.

Twenty Leaders remains in a long-term up-trend - above the 20-Week EMA and the up-sloping trend-line from April, 2024.

This week's fall looks like a normal pull-back in an ongoing bull market.

Negative divergence on the MACD indicates a fall in momentum which might be an indication of an impending fall in the market.

VLC (ETF for XTL) - Daily Chart.

Since the beginning of November, VLC has been in a medium term up-trend, which has been put into doubt by the fall in the past seven trading days.

On Friday, VLC hit below the 50-Day EMA, but strong intra-day buying pushed the day's candle back above the 50-DEMA forming a "hang-man" candle which often signals the end of a down-trend. We need to see an upside move in the next couple of days.

Let's turn now to the performance of each stock in the 20 Leaders.

One Week Performance of 20-Leader Stocks.

Six stocks were up this week and fourteen stocks were negative. The magnitude of the falls were much greater than the magnitude of the rises.

The big surprise this week on the upside was Woolworths. WOW has been one of the weak stocks in the 20 Leaders but out paced all of them this week with a rise of +1.67%. WOW is one of the big "defensive" stocks in the ASX, but given its recent bearish efforts, this week was a welcome change of pace for WOW.-

The next two best stocks were the big miners, BHP up +1.15%, RIO +0.78%. Both those stocks have underperformed this year, so this week's rises in a falling market is good news for investors in the miners.

Mansfield Relative Strtength compares the relative performance of a stock against the ASX200 (XJO) over the past 52 Days. A positive number indicates out-performance. A negative number indicates that the stock did worse than the XJO.

Mansfield Relative Strength - Compares performance of a stock against the XJO over the past 52 Days

The big take-away from the above list is the fall from grace of two of the big banks: NAB and ANZ. Both are now down amongst The Dogs. Meanwhile, CBA is the best of the best.

Chart for CBA

I thought, nearly three weeks ago, that the big down day for CBA -3.53% spelt the end of the bull market for CBA.

No, since then, CBA has been in a consolidation, going sideways across to the 20-Day EMA and the up-trend line from early October.

Probabilities now lie with an upside bounce here off the 20-Day EMA and the up-trend line.

Biggest Improvement this week - WOW.

About a month ago, WOW was listed as the worst of The Dogs on the 20 Leaders. It has now moved up the list into the "Mediocre" group. That's less a result of a sharp improvement in price - than a factor of WOW going nowhere in a bearish market.

For the past month, WOW has been in a long sideways consolidation.

There's a big "imbalance" gap between 32.65 and 30.71. Imbalances tend to be cancelled out by the market - either by a move up to half the gap or the whole gap. In this case, a move up to either 31.68 (half filled) or 32.94 (full fill). WOW is currently at 30.42. A break above horizontal resistance 30.67 should see more upside.

Improvement relative to XJO

The biggest improvements this week judged by differences in the MRS over the week were:

• WOW
• BHP
• RIO
• GMG.

The worst were:

• ANZ
• S32
• SCG
• SUN.

Its good practice to avoid the weakest stocks and look for trades amongst the improvers.

Take care.
RB