Monday, October 11, 2010

XAO topping

The All Ordinaries index appears to be in the final stages of the topping process. In the chart below two triangles at different degrees are evident and will complete wave (c) of '2'.

The index hit a key target today @ 4773 described in the last post and declined for the rest of the day, but I suspect there is still further upside to go as the decline does not appear to be a 5 wave move right now.

In support of the wave 2 topping, two triangles are evident on the short term count and indicate an upcoming trend change. The first triangle is an expanding triangle for wave 'iv' and the second is a smaller triangle wave '4' circle, both are indicating a upcoming change in trend of a higher degree. Thus, it is anticipated that wave '2' will come to an end in as little as a few trading days or into the early part of next week.

Breaks of the short term wave 2-4 circle trend line and the slightly longer term wave ii-iv trend line will be key indicators that will signal a potential major change in trend. 

Possible target area:
  • at 4816, wave '5' circle will be equal to wave '1' circle.

1 comment: