Monday, June 4, 2012

XAO Short Term Update

The 4000 level is almost upon the All Ordinaries and the possibility of a bounce is increasing with a divergent MACD and strong support levels at 4000 and 3940.

Both these target levels represent Fibonacci ratios of wave 'iii' circle as described below in the chart. MACD divergence is covered in more detail in this post and it is usually a very good indicator for determining the endpoint of wave 3's.

There is a possibility that wave 'v' circle down is complete and would mean wave '1' down is complete.

No comments:

Post a Comment