Sunday, November 27, 2011

Technical Analysis - 21 Nov 2011 - Dow and All Ords with Gann Angles

Since the last update to the Gann charts of the Australian All Ordinaries (XAO) and the Dow Jones Index (DJI), Greek has changed Prime Minister, Italy took over the bad news, Italy changed Prime Minister, Germany failed to sell all its bonds and France is in risk of a ratings downgrade. On either side of Europe, the US SuperCommittee failed to agree on debt reduction plans while the growth in China is in serious doubt.

All these news within two months and it looks like the world finance system is beyond hope. So what do the charts tell us?





The charts below are weekly charts so within the last 2 months there is about 9 new points on the graph. Both the All Ords and Dow Jones show a similar characteristic. Both when sharply up and then both went sharply down. Both have not even reach the resistance level talked about in the previous blog post.

The summary is that, sure the trend is sharply down. But it has broken no major Gann resistance angles yet and have a slight way to go. So although the news sound hopelessly indicating a financial meltdown, the charts say Not Yet.