The market closed quite well off its intra day highs as is been doing come Friday. Its obvious that traders don’t wish to go home long over the weekend and also the NAB capital raising is still weighing on prices. The good news is that daily trend and momentum filters remain up and our red alerts have worked back to normal now. However we do have a serious pattern to consider; Type-A Bearish Divergence is now present on the weekly charts. If price breaks back below this weeks lows of 3992 then we should be very wary of some extended weakness of at best sideways trading. We have come a long way very quickly which is why we got the red alerts, but a breather should be expected and it may well be signaled from this divergence. The positive spin on this is that we’re sitting on a nice zone of support which could cushion and moderate any falls.
*Note: The Systematic PowerSetups will start on Monday. We’ll be posting Monte Carlo simulations tomorrow for your consideration.
Fri, Jul 24, 2009
ASX Commentary