The All Ordinaries index continued to rise making new all time highs last week. On Friday September 3, it stopped at the resistance level of 3596 which I mentioned in my last report.
The market is now entering week 17 of its 19-week “Primary Cycle”. As mentioned in my previous report, it has confirmed a ‘right translation’ (making a new high after the midpoint of the cycle) indicating a bull cycle. The ‘one-day countertrend’ on September 6 was another strong bull signal. If I were long in the index and it continues to rise, I’d be keeping my stops just under the daily swing lows as the market entered the Primary Cycle orb period on September 7.
Watch for strong resistance at 3629 and 3647. Reversal dates coming up are Wednesday 15 and Friday 17 (which stretches across the weekend to Monday). Friday 17 and Monday 20 have a high probability of being a primary cycle top (or bottom) or greater.
CML – has now broken through the triple top …
A triple top is a very strong reversal pattern which in most cases causes to stock to fall dramatically, however if the stock continues to rise through the confirmed top we could buy back with the expectation of a further strong rises.
Monday, September 13, 2004
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