Current Charts and New Charts

Current Charts and New Charts - Mar/Apr 09

By Dawn Bolton-Smith.

ASX 200 INDEX – Semi-Log Scale – Weekly Close (3342)

ASX 200 index

The weekly close chart has served us well as a roadmap to the bear market, initially signalling the major change of trend (A–B) in January 2008. That change could well go down as one of the most important pivot points in our history. The trend and angle lines are providing definitive levels of support and resistance on a weekly close, which can be used for future projections and probabilities. The significant levels are tabled for each quarter of the current year. Two new lines (I–J) and (K–L) have been added. The K–L median line and the line I–J, established from two pivot points (March 2008 and November 2008) joined to make a support line. The March 2009 quarter support line at 2800 is into the 2003 low. These trend and angle lines can be equated to moving averages. Currently the 15-week moving average is 3699. The bear market rally high was 3735...

Excerpted from an article originally published in the Mar/Apr 09 issue of YourTradingEdge magazine. All rights reserved. © Copyright 2009, MarketSource International Pty Ltd. If you are not a subscriber, click here to subscribe, or to purchase this issue as a single back issue, click here.

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