Thursday, December 2, 2010

XAO Very Short Term update

Five waves down from the top of Wave '2' appears complete and a wave (ii) correction has been unfolding and should be near complete - the downtrend should resume in the next couple of days.

However, the 5 wave decline isn't a smooth one and there are other interpretations that should be considered that lead to further upside potential.

For the bearish count as shown: Wave (ii) has just pushed over a 50% retrace and is in a good position to complete with the MACD price oscillator on the 15min chart (not shown) being divergent. Pushing past 76.8% retrace @ 4828 would be a key indicator to watch for and imply an alternative could be unfolding.

Note: I'm also missing some data due to an ASX upgrade - the missing data is in the 'A' circle leg of the wave (ii) correction. I haven't looked closely at the impact to any wave counts as yet.

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