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Monday 7th February, 2011

Mon, Feb 7, 2011

ASX Commentary

Weekly Trend: Up
Daily Trend: Up
Daily Momentum: ___ Flat

A very flat day on the market today, the XJO edging up to close 5.8 points higher. A pause could be expected here following a few good days, given the recent choppy price action of the market. The weak divergence mentioned on Friday has been negated and no longer exists on our divergence indicator, though that is now firmly in the overbought area. The next few days may just determine if this breakout is going to hold. The lackluster session follows a similar flat US session on Friday night, the Dow Jones up roughly 29 points. The Australian Dollar continues to look strong and holds parity against the USD, currently at 1.0151.

About the Author:

Nick Radge has over 25 years’ experience in the financial markets. He is Head of Research & Trading at The Chartist, manages money using active management strategies and consults to various financial planning, stock broking and accountancy firms. He can be found on Facebook, Google + and on Twitter.

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