Chart Watch 2009-03-05

XAO - All Ordinaries 

The DOW closed up overnight 149.82 points to 6875.84 (2.23%) after 5 days of selling.  The Dow failed to break back through 7000. 

The All Ordinaries has  had an un-eventful day failing to regain the lose of the previous trading day.  The XAO closed up 21.2 points to finish at 3147.1 (0.68%).   I was looking for the high of the previous day (3171.4) to be taken out and stick, but our market was a bit more cautious than the DOW and the high for today of 3177.1 failed to hold.

XAO still showing oversold on CCI(14) and Stochastic. 
Shorter term oversold Williams %R (3) and RSI(2) are not.

Today’s headlines
Chinese 8% Growth Target
Housing Sector ‘May have turned corner’
Minemakers launches takeover of Bonaparte

XJI - ASX Information Technology
One of the stronger sectors on the ASX is the XIJ or Information Technology sector.  Support looks to be in at 399 

PAG – PrimeAg
Support now become resistance on this agriculture stock.  3 times the stock price had tested the $1.05 level.  Above average volume today to close a further 5% lower at $0.97

Quick Trends

Symbol	Short Term (10MA)	Medium Term (50MA)	Long Term (200EMA)
XAO	Down	Neutral	Down
XDJ	Down	Neutral	Down
XEJ	Neutral	Neutral	Down
XFJ	Down	Down	Down
XHJ	Down	Up	Down
XIJ	Down	Up	Down
XMJ	Down	Neutral	Down
XTJ	Down	Neutral	Down
XUJ	Down	Down	Down

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Chart Watch 2009-03-01

XAO - All Ordinaries



Three trading days in a row closing below 3300, with multiple attempts to break through. All trends on the XAO still pointing down.

WOW - Woolworths



Wow indeed. Late last week I highlighted Woolworths ... made the critical mistake of not checking the economic calendar. Earnings come out below expectations and gapped down well under my stop loss (open $26.9). Take the hit on this one.

JBH - JB Hi-Fi



JBH has created a throwback patten. "A throwback is simply a return to the point of breakout on an upward break ... If the breakout is true, price should hit and then bounce off the point of breakout and then surpass the point at which momentum waned and price turned".

Some rules for trading the throwback

1. Return to point support, trend line or pivot point

2. Oversold on your favorite indicator

3. Pullback to a major moving average, such as the 30, 50, or 200 day.

So how as JBH played out so far:
* Resistance was $10.30 (5/11/2008) and $10.26 (7/01/2009)
* 17% gain on 10/02/2009 closing at $10.80 on extremely high volume
* Pullback to support closing $10.29 and just below 200EMA on 25/02/2009
* RSI(2) was oversold on pullback to support (25/02/2009)
* Stock pulled back into the traders action zone

See how this stock plays out. Stop loss ideas include $10.26 (support) or take low from swing at $10.05.

From swing-trade-stocks "Forget buying breakouts. Step away from the crowd. Wait for the breakout buyers to get scared and sell. This sets up the pullback that you can get into with low risk, high odds, and a profitable reward."

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Chart Watch 2009-02-07

RIO - RIO Tinto



Recently broken trend-line dating back to September 2008.
Broken through 50-day moving average
Volume increasing past couple of weeks
Short term support around $36.30

What for RIO to close above $46.93. A close above this could indicate a move up towards resistance of around $60.00

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Chart Watch 2008-05-29

XJO - S&P ASX 200



As displayed in my last post , the XJO was sitting right on a current trend line. This line has since been breached. XJO now lookig for support at the 100MA, and the 32.5% Fibonacci Retracement.

On the 5/4/2005 Colin Twiggs indicated potential resistance at the 5900-6000 level which looks to be playing out.

"The All Ordinaries broke above short-term resistance at 5450 on heavy volume and is headed for a test of resistance at 5900/6000. Resistance is expected to hold because of the bear market, but continued advances on strong volume would increase the chance of a breakout. "

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