Post GFC the ASX has experienced all forms of market movements requiring the most seasoned traders adapt to make a profit or even protect their capital. But where to from here, after five (5) months of horizontal movement the ASX All Ordinaries looks to be setting up for a brake up as it decrease its trading range off the resistance level of 4,420.
This is coupled with the fact that during these five (5) months the world markets have been cautious with concerns coming from Europe as Greece and Italy struggle to pay interest on their government bonds.
The by-product of these five (5) months of concern and horizontal movement, is impatience, as people become accustomed to the concerns regarding Greece and Italy, people get reckless, and will begin putting money into the market that will result in this brake up.
This brake up will then test the ASX and see if people are ready to begin investing in shares again or if impatience from investors will drive another short term uptrend and correction.
You may be thinking that traders are smarter than this and learnt their lessons, but I remind you that people are people and stupidity always returns when people are driven by money.
This is coupled with the fact that during these five (5) months the world markets have been cautious with concerns coming from Europe as Greece and Italy struggle to pay interest on their government bonds.
The by-product of these five (5) months of concern and horizontal movement, is impatience, as people become accustomed to the concerns regarding Greece and Italy, people get reckless, and will begin putting money into the market that will result in this brake up.
This brake up will then test the ASX and see if people are ready to begin investing in shares again or if impatience from investors will drive another short term uptrend and correction.
You may be thinking that traders are smarter than this and learnt their lessons, but I remind you that people are people and stupidity always returns when people are driven by money.
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