by Gabriel Andre on November 19, 2008
Totally positively correlated with the S&P/ASX 200, the All Ordinaries Index (ASX: XAO) has reached yesterday a new low since August 2004. It closed 3,513.10 points. This is a key level. Actually it’s more a key area rather than a precise point. Say that between 3,400 and 3,500 points there should have some massive buying interests.
Of course the fundamentals that drive the current price action are really bearish. The momentum indicators are also really bearish. The MACD and the technical Momentum Index remain bearish and they plunge more deeply towards extreme low levels.
[click to continue...]
by Gabriel Andre on November 3, 2008
In our last update we were mentioning that it was probable that the Index would fall further down towards the next significant support area, around 3,400/3,500 points.
Last week the price action posted an intraday low below 3,700 points and closed at 3,755 points on Tuesday. The following 3 trading sessions were up and today the market has also opened higher. A rebound is building up and might gain some momentum in the coming days.
Between the high point of May this year (point A on the chart) and the recent low (point B), the All ordinaries Index plunged by 38%. Only a few very short rebounds were initiated during this period, but as the technical indicators declined to extreme low levels and argued for a massive oversold configuration, this time the rebound could drive the Index more sharply.
[click to continue...]
