I am analysing this LONG TERM( old school definition) MONTHLY CHART of All Ords (XAO). We have a short term bullish PIVOT POINT REVERSAL on hand end of month confirmed. The last bar representing the current month of March not only confirms the PIVOT POINT but also turns the Dow Theory short term up as well.
Expectation now is that over the next 5 to 10 months, we are likely to see a bullish bias to the upside or at worse, further range bound price action behaviour.
The low of the penultimate bar @ 4762 ( Feb. low) now gives us a reference point to work with. A support in other words. The down trend line in blue clustering with the 12 period monthly SMA as well as the high made in the current month ( 5272) is the significant zone of resistance on the upside. Both levels are to be treated as short term support as well as resistance levels going forward.
For me to turn bullish in the next higher time frame ( medium term), I would want to see the XAO close above the October 2015 high of 5421.
For now short term bullish developments and medium term trading range still in effect.
XFJ ( ASX Financials) sector on the other hand, fell short of a PIVOT POINT unfortunately. I am now looking for a complex pivot point for the XFJ over the coming months.
XAO Monthly Chart below.
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