AGF (AMP China Fund ASX) Daily Chart Analysis 28/11/2015.

A perfect medium term “M” top completed yesterday with AGF, as far as it’s technical are concerned, suggesting a pullback/decline.

M tops as well as W bottoms are common pattern formations which should be watched by technical traders. What is interesting is that, AGF had struggled at it’s 200 day SMA (Red SMA) which in itself is a resistance. There is price support clustering with 50 Day SMA (Blue SMA) at current levels which may or may not hold.

For me personally, seeing this sort of reversal patterns, if my view in holding an instrument in analysis is short/medium terms, is a valid exit LONG POSITION trigger.  It is important to define time horizon that we would want to conduct our campaign and use correct time frame charts to compliment it.

In the case with AGF, if one pulls the weekly chart of AGF which is the time frame that we should do our analysis in, what they would also see is a BEARISH PIVOT POINT REVERSAL ( Bar Chart terms) suggesting a pullback/correction/decline over the next 5 weeks may be on the cards with AGF.

If this BREAKDOWN on the  daily chart as well as the PIVOT POINT REVERSAL on weekly are genuine ( unless proven otherwise), we expect the decline to continue. In Wyckoff Method of Analysis, Friday’s price action is a typical SOW ( Sign of Weakness).

Summary : There is a BEARISH MEDIUM TERM  development with AGF which is confirmed at the close yesterday (27/11/2015) which deserves an attention. High of the penultimate candle made on 26/11 @ $1.385 may hold the key whether or not this breakdown is genuine or a whipsaw. Worth watching that level IMO.

Daily AGF Chart below.

agfdailybreakdown271115

Weekly AGF Chart below showing the BEARISH COMPLEX PIVOT POINT REVERSAL ( OHLC Bar terms, candles shown).

I am an old school BAR CHART person, but since candlesticks are more widely used, I use those at my posts.

agfweeklypivot

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