ASX 200 Health Care Index, XHJ Monthly Chart Outlook.

Parabolic rise since early 2017 and shortening of the thrust(range) at the last bar are what draw my attention to this index. Otherwise, major uptrend in all time frames.

What appears to be a parabolic rise at present which may potentially signal a corrective period being on the horizon. Two up trending channels, one  representative of it’s long term (shown with Red channel lines) and other it’s  intermediate term ( shown with Orange channel lines) trends worth keeping an eye on still . Why bother if both have been violated with an upside breakout ? Prior resistance lines now reversing their role and acting as a support on any pullback/corrective period if and when on hand. Other technical indicator to watch would be the 12 period monthly SMA. One can also see how overbought this index is in comparison with it’s 12 period SMA or long term mean.

Analysis continues with XHJ and that of some gems within.

Monthly XHJ.ASX chart is Chart is courtesy of tradingview.com

xhjmonthly12072018

 

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