XAO Indicator

This blog is intended to be read in conjunction with the XAO Indicator which can be found at http://www.asxindicator.blogspot.com/.

I am not a financial adviser so you should not take any part of this blog as being financial advice. Observing and interpreting charts is a hobby and so is this blog. The information in this blog is just my opinion, it may not reflect reality. Stock market investing is risky - you can lose all, or potentially more than all of your money given certain market conditions. Not only can lose a lot of money buying shares, you can also lose a lot of potential profits by selling shares at the wrong time. So please do not buy or sell shares because of information in this blog. Whether you buy or sell shares is your decision as is the decision when to buy and sell. Do not risk any money you cannot afford to lose. Do not risk any money if you do not fully know and understand what you are doing.

Friday, February 11, 2011

There's a trendline in the way

MEY is on the cusp of breaking out but a bunch of shares at 10.5 cents is keeping the lid on further advances. The price of 10.5 happens to correspond with a trendline starting from the March 2010 high. Will this trendline hold the advance? On 18 October 2010, the price gapped through the first trendline connecting the March '10 high to the May '10 high. The price then neatly 'hugged' the top of that trendline for the next two months until finally and seeminly reluctantly, closing the gap. Then somewhat sluggishly, it started on its current advance. That advance is now gathering pace. If and when it does cleanly break through 10.5, expect the price to reach at least 18 cents.
Click on chart to enlarge

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