This analysis of Australian All Ords. (XAO) is for EDUCATIONAL PURPOSES ONLY. It is my view that, latest price action behaviour experienced with XAO has started the process of a MAJOR DISTRIBUTION/TOP. Bar marked as "Sign Of Weakness Bar" is likely to have follow through effect to higher time frames, in time off course. Distribution by smart money/better informed more often than not takes a while ( weeks/months) unless an inverse V correction is on hand. New highs with failed followed - through is also on the cards. Unfortunately, one box PnF count can not be taken due to a missprint by the software.This said, I have a short horizon bearish price objective of 5847.50 at present from a properly constructed 1 box chart ( not shown). Analysis continues with interesting times ahead.....
Don't we all love congestion,flat/range bound price action behaviour,trading ranges ? Isay potentially welcome to another one of those. This update on All Ords is in the next higher time frame weekly to eliminate some of the daily noise. ABC correction target cluster with 40 period weekly SMA + Point and Figure 1 box bearish price objective ( done with another software ) did give us a floor/support going forward.Even if it is temporary, but it is set.
What may potentially unfold from here on ? Expectation may be to expect a congestion/flat price action behaviour for a considerable period, well into October perhaps.We need more data and bar by bar analysis comparing apples with apples in order to get further insights as to how the anticipated trading range may resolve itself ( up or down). It is therefore important not to rely on trend following indicators until we start trending in either direction. Major trend being up still favours an upside breakout from the anticipated trading range. At present, we could keep an eye on the support zone of 5830 to 5880 on the down side as well as the down tentative trend line drawn from the recent peaks for further clues.
Another new high also not being rulled out at this stage, even if we are in the early stages of a potential distribution.
Analysis continues at thecharttechnician on AU stocks and indicies....
What may potentially unfold from here on ? Expectation may be to expect a congestion/flat price action behaviour for a considerable period, well into October perhaps.We need more data and bar by bar analysis comparing apples with apples in order to get further insights as to how the anticipated trading range may resolve itself ( up or down). It is therefore important not to rely on trend following indicators until we start trending in either direction. Major trend being up still favours an upside breakout from the anticipated trading range. At present, we could keep an eye on the support zone of 5830 to 5880 on the down side as well as the down tentative trend line drawn from the recent peaks for further clues.
Another new high also not being rulled out at this stage, even if we are in the early stages of a potential distribution.
Analysis continues at thecharttechnician on AU stocks and indicies....
See link for the chart