Monday, 3 October 2011

ASX 200 monthly chart

Log scale monthly candlestick chart, including after hours trade. The trend line angle appears to be significant, and the lower trend line zone may provide temporary support or even spark a rally of a few weeks duration. That said, don't forget that (1) the trend is down and (2) momentum is negative and declining, so any rallies will likely be short lived. A break lower through the trend line zone would likely indicate an acceleration of the down trend.