XAO P&F Chart Update EOW 16/10/2015.

This is the chart which we have been following for XAO Tentative Price Objectives, BULL or BEAR. Word of caution once again that some of the Tentative Price Objectives as the name suggests may or may not be met or even exceeded in strong trends. They are no better than a rough estimate. But in this game of probability every added information may help. This may be another one of those, which I personally use and look at.

I still maintain my personal stance with our market that, unless until we see a 20% drop from the highest high, the MAJOR TREND remains BULL. That is what I use for XAO to determine the MAJOR TREND on hand. Anything else in between is considered a correction which we are in one at the moment in my opinion. A deep one with lots of technical damage on hand to repair. That repair process had started on the 25th of August when our SCLX was reached with XAO, if we could remember from earlier posts. Will it succeed ? Depends how we measure success and what our expectations may be. XAO is doing all the right things as of this writing 18/10/2015. Will it continue that way ? I wish I knew.

Now to XFJ chart posted earlier( ASX 200 Financials) which are considered to be in a BEAR MARKET if that same 20% rule is applied.If we take the April High with XFJ, which was 7303 x 0.80 = 5842 was where XFJ did fall into MAJOR BEAR MARKET, not by much though, but enough to call a BEAR MARKET with XFJ. For XFJ, to be considered  in a MAJOR BULL RUN again, September low of 5644 x 1.20 = 6772 is required, if the same rule is applied. This is a well respected/used MAJOR TREND DEFINITION rule amongst analysts. XFJ used as an example which we cover.

Back to our XAO P&F 3 Box Chart, Box Size 20 points, H/L Daily Method.

Our new Tentative Bullish Price Objective is @ 6140.

P&F Chart was reasonably accurate in my view with the Tentative Bearish Price Objective after the April high. Will it be equally as good this time around with this new Tentative Bullish Price objective remains to be seen.

I have calculated a H/C (Horizontal Count) after the completion of a valid count pattern with XAO . Software package used at StockCharts.com gives us a T.P.O of 5800 still, but H/C, after the last three buy signals are higher with our count. It was after the price action on Friday that I was given a clear wall count, price action leaving the pattern with a double top buy, enabling me to take the count. Two prior signals were also buy signals as can be seen on the chart ( marked with three Red arrows).



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