All Ordinaries Index (XAO) update

Submitted by Marco on 11 June, 2006 - 13:26

The Australian Stock Exchange is reeling from recent highs. The question remains – is this recent downturn in the All Ordinaries (XAO) simply a correction or the beginnings of the big crash? The consensus still says that the recent movements are a correction.

Basic technical analysis on the All Ords chart doesn't reveal any chance of a reversal in the short term. The last two days of trade reveals a support level of just less than 4900. Also note the peak in volume above the MA for the respective trading days. Any falls below the 4900 level will rely on the next support level of just above 4750. On the other hand the overhead resistance level is around 5050. Any break above that level may resume the uptrend. But it may take some time and momentum for the XAO to reach that level and resume that uptrend.

The All Ordinaries is an index of a basket of stocks on the Australian Stock Exchange (ASX) listed under code XAO. Check your charts!