XAO & XJO both down but there is some support.

September 29, 2014

Mon 29th Sept

The Aussie stock market has taken a bit of a battering over recent sessions and the two key Aussie stock market indices, the XAO and XJO are both trading lower.

XAO weekly: The All Ordinaries index had been struggling around the 61.8% fib of the 2007-2009 bear move for most of this year but had recently looked to break up from this range. The last few weeks have brought this move undone though and the index is now trading back below the 61.8% fib BUT still above a weekly support trend line:

XAOweekly

XJO weekly: The ASX 200 hasn’t fared as well and is below the 61.8% fib but this index is below the weekly support trend line as well:

XJOweekly

XJO daily: I’m being a bit cautious here though as the daily chart shows this decline still trading within a descending trading channel. This could just as easily evolve into a ‘Bull Flag’. Traders need to watch the daily chart trend lines here to try and pick the next move with this index:

XJO

 Summary: the two main Aussie stock market indices are both trading lower but there is some support nearby for each one.

  • XAO: traders need to watch the weekly support trend line that is just below current price.
  • XJO: traders need to watch the daily chart’s trading channel trend lines.