I posted about the ASX Small Ordinaries index, Ticker: XSO last week and this is a follow up article. I had noted how the ASX-200 Index is trading right up under the previous all time High, set back prior to the 2007-2009 Global Financial Crisis (GFC), and that given it is navigating this major psychological region, the Small Ords index might offer better trading potential. This post contains a recap of the first article along with charts of some Small Ord ETFs and stocks that appeal to my style of trading: I like to look for stocks breaking out of congestion patterns and that, preferably, are trading off their all time High. This information is intended as being for educational purposes only and, as with any activity, do your own due diligence and risk-management assessment.
XJO weekly: The ASX-200 Index: the XJO: ASX-200 is trading up near the previous all time High, just under the whole number 6,850 level, that was set back in 2007. The index, and its components, might struggle a bit from here for a bit as price action navigates this major psychological barrier:
XSO: The ASX Small Ordinaries Index:
The XSO is an index of those stocks in the ASX-300 but not in the ASX-100. That is, it is the list of the next 200 top ASX stocks after the ASX top 100. A list of XSO Small Ords stocks can be found through this link.
XSO: ASX-Small Ords weekly: The XSO Index is nowhere near its 2007 pre-GFC High of circa 4,200. Price action is currently trading under the whole number 3,000 level making this the one to watch for any new make or break.
It is the fact that this index has so much more room to move to reach its previous High that appeals to me. Any continued strength with USA stocks could help underpin ASX stocks and, if so, there might be better trading opportunity across stocks making up the XSO index than the XJO: ASX-200.
Watching for any momentum-based, break and hold above 3,000 on the XSO might be a good metric to use here before initiating any trades of XSO ETFs and stocks:
XSO: ASX-Small Ords daily: the XSO is printing higher Highs and higher Lows for now which is bullish BUT watch for any new make or break at 3,000. Should price action break to the downside, and break through the support trend line, then traders need to exercise caution that the pullback doesn’t just shape up into a consolidation style Bull Flag before the next move higher. However, any continued pullback would bring the 61.8% fib region, down near 2,600, into focus; a pullback down to the 61.8% fib level is considered normal in the ebb and flow of trending markets.
XSO Index stocks and ETFs:
The charts below show just some of the 200 stocks from the the XSO index and two XSO ETFs that appeal to my style of charting and trading. Remember that I am analyzing these stocks from a Technical Analysis perspective and not from a Fundamental perspective. I am looking for trading opportunities and not long-term investment opportunities so please keep this in mind as you scroll through these charts. I use Fibonacci levels to help identify target levels and you can read about my perceived value of Fibonacci through this link and see more examples at this link.
XSO ETFs: there are two ETFs to consider BUT traders need to check out the fees associated with ETFs as they vary and some can be expensive to hold.
ETF: SMLL weekly: this Small Ords ETF looks to be in a type of ascending triangle pattern. The theory behind these patterns is that any bullish outbreak might extend by the same extent as the height of the triangle. In this case, any bullish breakout above $3.55 might extend a further $0.70 cents and so this could be used as a potential profit target.
ETF: ISO weekly: there is a similar pattern here with recent price action on this ETF so watch for any bullish break and hold above $5.35:
XSO Index stocks
ABP weekly: The $4.30 region seems to be the resistance level to beat for this Real Estate sector stock. Any new break and hold above this level would have me looking for potential retracement to the S/R region of $7 that is also near the weekly 61.8% fib.
AX1 weekly: Any bullish triangle breakout on this Apparel sector stock would bring the previous High, near $2, into focus:
ABC weekly: Note the bounce off the weekly 61.8% fib for this Basic Materials sector stock! Any bullish wedge breakout would bring the previous High, near $7, into focus:
AAC weekly: Watch for any triangle breakout on this Agricultural Products stock. Any bullish breakout would bring the previous S/R level of $1.70 into focus as this is also near the weekly 61.8% fib:
BIN weekly: Watch for any triangle breakout on this Waste Management stock. Any bullish breakout and close above $2.50 would bring the previous High level, near $3.25, into focus:
BVS weekly: This Tech / Software stock has a Bull Flag look to it and you can read about this bullish technical pattern through this link. Any bullish breakout would bring a target of +$5 into focus:
BWX weekly: Watch for any triangle breakout on this Personal Products stock. Any bullish breakout would bring the previous S/R level of $6 into focus as this is also near the weekly 61.8% fib:
CGC weekly: Watch for any triangle breakout on this Farm Products stock. Any bullish breakout would bring the previous S/R level of $7 into focus as this is also near the weekly 61.8% fib:
CSR weekly: Watch for any triangle breakout on this Building Materials stock. Any bullish breakout would bring the previous S/R level of $5 into focus and this is just beyond the weekly 61.8% fib:
EHL weekly: Watch for any triangle breakout on this Earth Moving equipment stock. Any bullish breakout would bring the previous S/R level of $12 into focus as this is also near the weekly 61.8% fib:
FBU weekly: Watch for any triangle breakout on this Building Products stock. Any bullish breakout would bring the previous S/R level of $8 into focus as this is also near the weekly 61.8% fib:
FXL weekly: Watch for any triangle breakout on this Financials stock. Any bullish breakout would bring the previous S/R level of $3.50 into focus as this is also near the weekly 61.8% fib:
FNP weekly: This Packaged Food stock has a Bull Flag look to it and you can read about this bullish technical pattern through this link. Any bullish breakout would bring a target of +$6 into focus:
HUB weekly: This Financial Services stock also has a Bull Flag look to it and any bullish breakout would bring a target of +$15 into focus:
IMD weekly: Any bullish wedge breakout on this Industrials stock would bring the 61.8% fib, near $2 into focus, followed by the previous High, near $3.30:
IGO weekly: Any bullish triangle breakout on this Metals and Mining stock would bring the previous High, near $9.50, into focus:
IRI weekly: Any bullish continuation with this Tech / Software stock would bring the previous High, near $4, into focus:
KGN weekly: Any bullish triangle breakout with this Online Retailer stock would bring the previous High, near $10, into focus:
LYC weekly: Any bullish break and hold above $4 for this Metals and Mining sector stock would bring the previous S/R level of $16 into focus followed by the previous High, near $28:
MNY weekly: The $2.25 level seems to be the one to watch on this Financial Services stock for any new make or break:
MSB weekly: Watch for any triangle breakout on this Biotech stock. Any bullish breakout would bring the previous S/R level of $7 into focus as this is also near the weekly 61.8% fib:
MYR weekly: Watch for any triangle breakout on this Department Store stock. Any bullish breakout would bring the previous S/R level of $2.50 into focus as this is also near the weekly 61.8% fib:
NXT weekly: This Tech stock also has a Bull Flag look to it and any bullish breakout would bring a target of +$6 into focus:
PNI weekly: Any bullish triangle breakout on this Financial Services stock would bring the previous High, near $8.50, into focus:
REG weekly: Watch for any triangle breakout on this Healthcare stock. Any bullish breakout would bring the previous S/R level of $5 into focus as this is also near the weekly 61.8% fib:
RRL weekly: This Gold stock looks to be setting up in an ascending triangle pattern. The theory behind these patterns is that any bullish outbreak might extend by the same extent as the height of the triangle. In this case, any bullish breakout above $6 might extend a further $5 and so this could be used as a potential profit target.
SHV weekly: Any bullish break and hold above $8 for this Health Food stock would bring the previous High, near $13, into focus:
SIG weekly: There already looks to be a new triangle breakout on this Pharmaceutical Products stock so watch for any push to the previous S/R level of $1.20 that is just beyond the weekly 61.8% fib:
SIQ weekly: This Business Services stock also has a Bull Flag look to it and any bullish breakout would bring a target of +$11 into focus:
Summary: Any bullish continuation with US stocks could help to underpin the Aussie stock market and, if so, stocks and ETFS from the XSO Small Ordinaries Index might offer better trading opportunities. Watch for any break and hold above 3,000 on the XSO to help asses trading potential. Traders might like look at other Small Ord contenders and they can do so by importing the list of stocks available through this link. I simply downloaded this list and saved into a CSV file and then imported into my charting software, Profit Source. Make sure that you do your own due diligence before any trading and exercise appropriate risk management.