Wednesday, May 18, 2022

Finspiration Australia. Chart Analysis of Australian and International Stock Markets.

 18/5/22.  XJO up strongly today.


XJO up today +0.99%.  We now have four days to the upside.  XJO is now coming up to the last of three Super-trend lines.  That might provide some resistance.

In a return to form, Materials (XMJ +2.5%) was the top performing Sector.  Consumer Staples (XSJ -1%) was the worst performer and the only Sector to record negative figures.

Here's the XMJ Chart:


The correlation of XMJ and XJO is clear in this chart.  XMJ has risen above two Super-trend lines and approaching the third one.  That might cause a consolidation or pull-back.

I've calculated a turn-date of 26 May.  So we can expect more upside in the medium term, but not before we see some consolidation and then a move to the upside.

Below is a different type of chart suggesting that the current move is a counter-trend rally:


This chart shows the Ichimoku indicators.  

XJO has only just moved into the Ichimoku Cloud - that's a neutral or no-trade zone.

We need to see XJO get above the Ichimoku Cloud before being confident of a bullish medium-term trend. 


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