We are feeling more positive about the market than we have for a long time. There has been a protracted sideways move in the XJO and BHP has been the albatross around the Australian market's neck.

But here are two flag patterns which we will watch with interest. AAD is making a classic flag pattern and CCL is making a rare typhoon pattern. Both are bullish patterns but they represent different crowds building up in each stock. They offer trading opportunities to the market and we will add these stocks to our notional portfolio which is up over 40% for the current financial year (CLICK HERE).

AAD                                                      CCL

     


Below are several links to past articles written by me, which now appear elsewhere on the internet for free.

http://remisiers.org/cms_images/guppyspeaks/DAILY_PRICE_RANGE.pdf

http://www.remisiers.org/cms_images/guppyspeaks/TRADING_IS_NOT_GAMBLING.pdf


Join us for a four week free trial at The Technical Report, click here

Is the DAX about to lose its dacks?

The top European markets (FTSE, CAC40 and DAX) have all reached a recent high and pulled back. The most interesting of these is the DAX which appears to be midway through making a head and shoulders pattern. If this does develop the last shoulder of the pattern, we could expect the DAX to retest support at around the 6000 level.

(c) thetechnicalreport.com

This post was taken from The Technical Report.

Copper Chart

Thee Copper price has recently broken the bottom of its trend channel and this will potentially weigh heavily on our largest mining stocks such as BHP and RIO and as previously discussed, weakness in BHP will translate directly into weakness in the XJO and dampen any upbeat sentiment across the Australian market.

International market analysis

The picture on the front of this weeks Report shows the arena where all the bulls and runners end up at the end of the Pamplona bull run in Spain. There is a parallel between this picture and global markets at the moment. Investors and traders in various global markets find themselves at the end of a recent bull run and now they are standing around, scratching their heads and wondering if that really was the end of the race and if not, they are looking around to see when and where the bulls will run next.

In recent issues of this report we discussed the failure of the DAX, the CAC40 and the FTSE. They were leading global markets lower. The Shanghai index (SSEC) is trending down even though recently it showed a two day rally and finally, the we are seeing the first signs of weakness in the trend of Dow Jones index, but as the GMMA chart will show, the broad based upward trend may well still be in place and this pull back could be temporary.

So is the Dow Jones going to follow its European cousins? There is as clear up trend in the DOW and a clear break below the trend line. Technically, this is an automatic exit signal. But the signals are not quite so clear cut when you incorporate the Guppy Multiple Moving Average (GMMA) into the picture.

The GMMA shows that while the short term investors and traders (the red band) have sold off the DOW, the longer term investors and institutional holders and buyers of stock (the black band), are soaking up the selling.

It becomes more of a concern when the red band breaks through the bottom of the black band and the black band tightens up and begins to chase the red band lower.

At the moment however, we are seeing the trend in place according to the GMMA even though the trend line in the top chart has clearly been breached to the downside and signaled weakness in the market.

Perhaps the short term traders have got it right and are moving out of the market in advance of an expected decline. Perhaps the long term investors have got it right and are continuing to soak up the selling at a time when the market is on the verge of rising higher. It is a battle of hearts and minds at the moment and we continue to watch with great interest because the DOW influences our market and often provides a daily lead which we cannot ignore.

This article is an excerpt from The Technical Report - for the full article, subscribe to The Technical Report Today!

The top three European indices broke their up trends and commenced developing rounding tops at the end of March and are signaling a lead that the Dow Jones might follow.

Will the XJO rally higher or not?

As we take a break over Easter, many traders are wondering whether or not the XJO will break through 4365 and have the upside rally that traditional technical analysis tells us should happen. The diagram below shows the XJO as it currently stands.

But our research into the Australian market at The Technical Report tells us that if BHP doesn't join the party, then any upwards move in the XJO and the broader Australian market is limited. Watch our video on the BHP Effect right here. If you like our research, our videos or would like to learn more about The Technical Report you can take a 4 WEEK FREE TRIAL of our NEWSLETTER. Just email us here with the word TRIAL in the Subject Line and we will start sending you a copy of our report.

Check out our short video through the following link: VIDEOLINK