by Gabriel Andre on December 1, 2008
In our last update (on November 19), we were mentioning that between 3,400 and 3,500 points there should have some massive buying interests. However the All Ordinaries Index (ASX:XAO) reached a lower level on November 21 at 3,200 points on intraday, and a low closing price at $3,332 points the day before.
The intraday price at 3,200 points was a 5-year low never reached since December 2003. The rebound generated last week has already lifted up the index by 14.75% from this low price. As a result, the indicators have turned bullish and argue for a further price development on the upside. But it may be only a short-term correction.
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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.
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