The local market has struggled to regains lost ground since closing below the support zone around the 5,650 mark. Analysts now speculate on where the next support level might be if the market continues to fall.
The monthly chart shows the long term trend line from the 2009 low is still intact and has been rising at a very slow rate of 5.8 per cent a year.
In contrast the [email protected] 500 index in the US is a long way off the lower trend line which has been moving up at over 13 per cent per year.
A recent scan shows the 26 companies out of the top 300 which have reached a new 63 day high over the past week. The number of new lows came in at 104.
Evolution the gold miner broke up out of a congestion pattern and we bought.
Polynovo looks to be making a similar consolidation pattern to Evolution.
We also added Resolute to our educational portfolio which looks to be recovering after a false break of the low.
We were stopped out of the ASX 200 CFD position when the index moved below the first higher low at 5670 which had some possibility of being the low of the first leg up. We were wrong in our assessment and quickly bailed out of the position. Trading consists of both winning and losing trades and getting out early can stop a big loss destroying your account.
The Commonwealth Bank is still firmly entrenched within a down trend channel.
National Storage is climbing towards the all-time highs.
Disclaimer: The commentary and trading positions taken are for educational purposes only and are not an invitation to trade. Trading is risky and individuals should seek Professional counsel before making any financial decisions. Many thanks to Incredible Charts.com software for most of the charts used in the column.
Monitor, measure, manage and maximise…Cheers Charlie.