Today we take a look at the All Ordinaries Index, which is the oldest index of shares in Australia, so called because it contains nearly all ordinary (or common) shares listed on the Australian Securities Exchange (ASX).
The bounce to 5800.4 completed wave (X). From this level, the Index declined in a triple correction form ((w))-((x))-((y))-((z)) where wave ((w)) ended at 5685.6, wave ((x)) ended at 5752.3, wave ((y)) ended at 5581.9, second wave ((x)) ended at 5606.6, and wave ((z)) of W is expected to complete at 5503.7 – 5560.1 area.
As Index is currently already at the inflection area above, wave X can happen soon ideally reaching 5643.3 – 5680 before the decline resumes. We don’t like buying the proposed wave X bounce. As far as 5800.4 level holds in the bounce, the Index is expected to resume lower after wave X bounce is complete in 3, 7, or 11 swings.