Chart Watch 2009-02-22

XAO - All Ordinaries



Not much changed from last Tuesday. Closed on or just below the short term support line. DOW closed Friday down 100.28 (-1.34%), breaching a 6-year low.

Latest news from Business Speculator indicate a week for the bears "With indexes at multi-year lows, the focus will be on battered banks Citigroup and Bank of America, two of the cheapest stocks on the Dow, after a top US senator on Friday said short-term nationalisation for some banks was possible."

CBA - Commonwealth Bank



With banks back in focus in the US next week, watch CBA in our market. The breakout opening price provided support, along with the 50MA. Friday's close was a NR7.


WES - Wesfarmers



Wesfarmers closed above its 50MA for the second time this year, also the second time since August 2008 just after its decline with the rest of the market began. One thing extra to note about this move is the increase in volume. Trend could be turning (not yet though), so I'll keep checking in on this one over the coming weeks.

One chart template I use to indicate a change in trend is the Guppy MMA as displayed below for WES. WES still has a way to turn around the short term moving averages to move above the long term.