August 12 2009 – Coiling

ASX Commentary

August 12 2009 – Coiling

Wed, Aug 12, 2009

The market held itself together very well today considering last nights decline in the US. We started the day weak but on back of some better than expected earnings we closed in the black, all in all a very good performance. Even though prices are stretched it does appear we’re seeing the index in a small holding pattern that has now been in place for 6 trading days. In itself this is a ‘high tight flag’ pattern and would be a bullish proposition. If you trade the index itself then that would be a buying oppportunity. I have added a few new setups tonight but also reiterate that caution is till required.

0saves

Save

If you enjoyed this post, please consider leaving a comment or subscribe to our newsletter and receive a free sample of our analysis each week.

This post was written by:

Nick Radge - who has written 898 posts on The Chartist.

Contact the author

Facebook comments:

Latest Share Trading Articles

The Hidden Strengths of Volume Analysis (part 2) September 19, 2010
In the last article I discussed two examples of how and why volume can show the changing face of supply and demand. When the order of supply and demand is change we will get a change in market direction, sometimes a significant change in trend or otherwise some degree of retracement of the prior move. [...]The Hidden Strengths of Volume Analysis (part 2) is […]
The Hidden Strengths of Volume Analysis (part 1) September 19, 2010
The power of correct volume analysis cannot be overlooked. Unfortunately the ability to read volume correctly is not readily discussed or freely available. Off-the-cuff remarks such as, “increased volume on advances is bullish and increased volume on declines is bearish” are bantered around but that’s as far as it goes. The correct use and application [...]T […]
The Psychology of Trading September 19, 2010
The most important part of investing and trading is psychology. Investing is a constant struggle where the battleground is not the market or advice given but comes from within you. You will face stress over losses, you will be in turmoil in deciding to enter or exit a position and it will place many demands [...]The Psychology of Trading is a post from: Shar […]