XAO Indicator

This blog is intended to be read in conjunction with the XAO Indicator which can be found at http://www.asxindicator.blogspot.com/

I am not a financial adviser so you should not take any part of this blog as being financial advice. Observing and interpreting charts is a hobby and so is this blog. The information in this blog is just my opinion, it may not reflect reality. Stock market investing is risky - you can lose all, or potentially more than all of your money given certain market conditions. Not only can lose a lot of money buying shares, you can also lose a lot of potential profits by selling shares at the wrong time. So please do not buy or sell shares because of information in this blog. Whether you buy or sell shares is your decision as is the decision when to buy and sell. Do not risk any money you cannot afford to lose. Do not risk any money if you do not fully know and understand what you are doing.

Tuesday, February 22, 2011

RIO falls below trendline support

Today, RIO broke below trendline support, but here's an interesting observation. The first chart is drawn on an arithmetic scale, the second on a semi-log scale. On the arithmetic scale, the trendline support was only broken today. But on the semi-log scale it broke the support a month ago and since then the rally has failed to break back above the trendline.


Arithmetic scale.
Click to enlarge.








Semi-log scale.
Click to enlarge
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