All Ordinaries Shifting Up
Chart of the Week 18 Jun, 2010
Stock Resource produces two research reports each week – its flagship Research Report that is based on fundamental analysis of companies and is published each Wednesday and Charting Perspectives, a technical analysis report that is published each Thursday. Charting Perspectives studies the forces that drive share prices, and by monitoring buying & selling relationships the chartist is able to identify trends and patterns, using them as a guide for the likely future direction.
Charting Perspectives is prepared by the highly regarded technical analyst Regina Meani and the following snapshot outlines Regina’s current assessment of the forces driving the All Ordinaries Index.
Assess the quality of our research now by registering for a Free Trial Membership
All Ordinaries Index (XAO) – 4547 points
Rallying higher
The fall to 4194 on May 21 proved to be a key short-term reversal day for the market and has boosted a rally. (See our report May 27) Initial resistance around 4500 has been overcome and the index is exhibiting the potential to test higher barriers located at 4650-4700 and potentially at the more critical juncture at 5000-5100.
Until this area is overcome we cannot view the current rise in the index as more than a rally, as the similarities to the 1994 correction remain strong and continue to suggest that the market may be vulnerable to another downturn. Current support for the index is located between 4400 and 4450 and a drop below this level may signal a return to the downswing.
In this week’s report we present a mixed bag of stocks in a reflection of the mixed market sentiment. From the top 50 companies we have selected AGL Energy as it moves sideways in a holding pattern for higher prices. From the mining sector, we find that CuDeco’s rapidly growing Rocklands copper project is attracting market attention as its share price churns higher. We also find that buying opportunities are appearing in the share prices for New Standard Energy, drilling for oil in the US and Australia, and with Integrated Research, a solutions provider for business-critical IT infrastructures.
