XAO outlook 09.05.09
by, 9th-May-2009 at 12:24 PM (2951 Views)
Just posted this on the XAO thread - also putting it here just to keep track of it all.
For anyone who actually bothers to read my posts I've obviously been bullish for a little while now. I'm yet to see too much to change my outlook (for now anyway).
We have had option 1 play out from this chart I posted earlier in this thread. This was the most bullish outlook at the time and while I thought it was a chance I really didn't think it would play out like it has.
I would now like to see a push through 4000 and then some consolidation above 4000 before an attempt at minor resistance at 4300. I'm starting to think 4800 isn't out of the question.
A lot of charts have now broken out of very solid basing patterns and along with the current strength in the markets it has me thinking there aren't too many weak hands holding stocks atm. This means that there could be some sort of distribution phase if we are to retest the lows. This will probably happen when the majority become bullish again because atm most people are still bearish or sceptical about this rally. If we see a strong swing in sentiment but fail to push higher it will be a strong warning sign of a possible reversal.
If my other theory about a trading range is to play out, the range could be between 3500-4500/4800.
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