ASX XAO All Ordinaries to start an uptrend in AUGUST
Updated
ASX:XAO dropped 39% from its high in Feb 2020 and has gained 15% in March 2020. With stimulus package announced earlier, Australian markets have rallied towards the month end.
A clear uptrend will not be established until we have a month (most likely AUGUST) that closes above XAO 5400 which is the red Resistance line shown on chart. I do not see ASX close under 4400 again.
Bar pattern in grey based on previous fractal / trend I can see develop in the next few months of volatility with ASX:XAO target of 6300 in March 2021
Blue vertical line in Oct 2021 is one of the fib time zones I will be watching for a likely pull back.
A clear uptrend will not be established until we have a month (most likely AUGUST) that closes above XAO 5400 which is the red Resistance line shown on chart. I do not see ASX close under 4400 again.
Bar pattern in grey based on previous fractal / trend I can see develop in the next few months of volatility with ASX:XAO target of 6300 in March 2021
Blue vertical line in Oct 2021 is one of the fib time zones I will be watching for a likely pull back.
Note
craigemm, I should have explained more when I said "Bar pattern in grey based on previous fractal"My thought process -
1) I drew a number of pitchforks, fib levels on pivot highs and lows along with Support / Resistance levels of this Monthly chart from 2008 to now.
2) Then I looked at the fractals for the same period to see which is 'best fit'.
This bar pattern / price action candle structure I thought was better fit considering volatility, and lined up nicely with the next Quarter which falls in July.
If I kept all this on the chart it would have looked way to complicated !
Trade active
For a moment there I thought we will continue the April uptrend in May to reach our 6300 target sooner. However with -5% today on 1st May, we have slowed down the Bull run. I still do not see ASX close under 4400 again. This chart has been fairly accurate so far.Trade active
#ASX XAO XJO has now broken past the resistance zone convincingly. Unless there is a major economic or political change in the status quo, we are still looking at our 6300 target and thats within within reach.Trade active
We have reached 6500 earlier than expected. If this fractal is still in play, we should see a double top and then drop back to 5500 in coming months.
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