Buyers came into Woodside Petroleum Limited (WPL.AX) at the close with a vengeance, driving the equity CFD through a downtrending resistance line of a falling wedge chart pattern on the 240-minute chart. The strong close at 35.37 sets up the market for a rally into the target zone identified by Autochartist at 36.15 to 37.00.

The overall quality of the chart pattern is a solid 7-bars. The initial trend which measures the strength of the trend prior to the chart pattern’s formation is an impressive 8-bars. Since the initial trend is up and the breakout is to the upside, Autochartist has determined that the trend change is a continuation. The uniformity indicator looks for equidistant tops and bottoms. Its 6-bar quality rating suggests that this occurrence is slightly above average. The clarity rating is a robust 9-bars. This quality indicator measures the amount of market noise present. Based on its high rating, the number of price gaps and price spikes is relatively low.

The falling wedge chart pattern is a trending pattern. It carries both the characteristics of the triangle and the channel down chart patterns. In this case, the gradual narrowing of the support and resistance lines compressed prices enough to indicate impending volatility. Once the resistance level was penetrated, buyers bought aggressively, triggering a breakout rating of 10-bars. Clearly, upside momentum is strong, however in order to maintain this bullish pace, volatility must continue to increase along with rising volume to fuel a rally to the Autochartist price level targets within the allotted time period.

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Westpac (WBC.AX) broke out to the upside with an expanded range when it crossed the resistance line of a triangle chart pattern on the 240-minute chart. The potentially bullish move followed several sessions of tight, sideways trading and set up the equity CFD for a potential move into the Autochartist price forecast zone at 21.42 to 21.82.

The overall quality of the chart pattern is rated an average 5-bars. The initial trend is rated a weak 1-bar. This quality indicator measures the strength of the initial trend prior to the chart pattern’s formation. The initial trend is also up as well as the breakout, leading Autochartist to conclude that the trend change is a continuation move. The uniformity indicator is an impressive 8-bars. This quality indicator looks for the presence of equidistant tops and bottoms. The quality indicator which measures the influence of market gaps and price spikes on the overall chart pattern is rated 6-bars. This suggests a slightly below average amount of market noise.

The triangle chart pattern is a non-trending pattern. It is wide at the start, but gradually narrows as it compresses the support and resistance lines. The tighter the ranges become, the more pronounced the impending breakout. Although this pattern suggests that the support and resistance lines are still relatively wide, the size of the candlestick on the breakout suggests the presence of volatility. The 8-bar breakout rating suggests that this market has the momentum that is necessary to drive it into the Autochartist target zone within the predicted time period.

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ANZ Bank (ANZ.AX) broke through the resistance line of an ascending triangle chart pattern on the 240-minute chart, completing the pattern and setting up the market for a possible rally into the Autochartist target zone at 21.69 to 22.19.

The overall quality of the chart pattern is a solid 7-bars. The initial trend is rated 5-bars. This quality indicator measures the strength of the trend prior to the chart pattern’s formation. The 9-bar uniformity rating suggests the presence of equidistant tops and bottoms. The clarity rating looks for distracting market noise which may skew the outcome of the developing chart pattern. The 6-bar rating suggests that the number of market “gaps” and “spikes” is below average.

The ascending triangle chart pattern is a non-trending chart pattern. The gradual narrowing of its support and resistance lines suggests impending volatility. This is the reason for the maximum 10-bar breakout rating. In order to reach the forecast price target within the allotted time period, traders must continue to support the rally with better than average volume and volatility.

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The formation of Point C on the Bradken Limited (BKN.AX) 240-minute chart has created an emerging ABCD Fibonacci Chart pattern. If the projected move from Point C to Point D, or the target price materializes as expected then traders should watch for a possible break into the series of Fibonacci retracement levels ranging from 8.43 to 7.73.

The ABCD Fibonacci pattern is considered the “backbone” of all Fibonacci patterns because its “lightening bolt” formation can be found in all other Fibonacci patterns. It is also a very powerful predictive tool because of its price and time symmetry. In order to forecast the rally from Point C to the target, Autochartist has used the move from Point A to Point B for guidance. The break from Point B to Point C is important because it equals a Fibonacci retracement percentage. With this knowledge, traders can make a reasonable estimate as to where the correction from Point C is likely to end.

The rally from Point A, or 7.95 to Point B, or 8.51 is equal to .56. The break from Point B, or 8.51 to Point C, or 8.08 is equal to .43. The .43 difference is equal to .768 percent of .56 which is very close to the .786 Fibonacci retracement level. Since Point C is equal to 8.08, adding .56 to this level identifies 8.64 as the next target price.

This Fibonacci pattern can be attractive to both trend and counter-trend traders. With the main trend up, trend traders may want to go long the market at the current price level for a trade into the target price. If this price and time target is reached, then counter-trend traders may want to go short, looking for a possible break into the series of Fibonacci retracement levels. Traders should note that a trade through Point C will negate this Fibonacci pattern. In addition, a trade through the target could trigger an acceleration to the upside.

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Following a prolonged decline, Origin Energy Limited (ORG.AX) equity CFD appears to be poised to breakout over the resistance line of a triangle chart pattern on the 1440-minute chart. Although this is only an emerging pattern, the 212-candlestick length suggests that prices have been pent-up for a while and that volatility may resurface once the equity CFD completes the pattern.

The overall quality of the chart pattern is rated a slightly above average 6-bars. The initial trend which measures the strength of the trend prior to the chart pattern’s formation is rated a low 2-bars. The 8-bar uniformity rating indicates the strong presence of equidistant tops and bottoms. In addition, the chart pattern shows a number of successful tests of the support line. The clarity rating is a solid 8-bars. This indicates that market noise – usually gaps and spikes – is well below average.

The triangle chart pattern is a non-trending pattern. As the support and resistance lines compress, the price ranges become tighter, indicating an impending breakout. Often this pattern leads to increased volatility. The length of the chart pattern has likely caught the attention of traders which may mean that rising volume may accompany any breakout. At this time the chart pattern is emerging, but Autochartist is suggesting that this market has a slight bias to the upside while recent trading activity indicates the presence of upside momentum. The strong close also indicates that resistance is likely to be taken out by aggressive buyers. If a breakout occurs, then the pattern will complete, leading to a possible acceleration to the upside.

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After bottoming at .47, Goodman Fielder Limited equity CFD, finished forming the neckline of an inverse head and shoulders chart pattern on the 240-minute chart. The subsequent gap and rally suggests the presence of strong buyers. In addition, the jump in trading volume from 2.4 million shares to 10.2 then 12.0 over the past three days confirms this assessment. This should help boost the momentum this market needs to breakout to the upside.

The overall quality of the chart pattern is a slightly below average 4-bars. The initial trend which measures the strength of the trend prior to the chart pattern’s formation is rated an average 5-bars. The uniformity rating looks for the presence of equidistant tops and bottoms as well as the strength of the number of touches of support and resistance. This rating is also an average 5-bars, however, judging from the activity near the resistance level, one can place great importance on this level.

The inverse head and shoulders chart pattern is often categorized as a non-trending pattern. Although its shape is distinct from the usual non-trending triangle, it does share the compression of prices as one of its key characteristics. In addition, the inverse head and shoulders chart pattern is always a reversal pattern. Traders should be looking for a breakout over the resistance level or shoulder line of the pattern. Once this pattern is completed then the next upside objective is usually equal to the size of the distance between the neckline and the shoulder line.

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Autochartist has identified an ABCD Fibonacci pattern on the Sundance Resources Limited (SDL.AX) 1440-minute chart. Now that Point C has been labeled at .43, Autochartist is projecting the start of a near-term break into Point D, or the downside target at .30. A move to this potential support level will mean the downtrend was reaffirmed when Point B, or .33 was penetrated, setting up the market for a near-term retracement into a series of Fibonacci price levels ranging from .35 to .51.

The ABCD Fibonacci pattern is known as the “lightening bolt” pattern. It is also often referred to as the “backbone” of all Fibonacci patterns. The key to this pattern is its price and time symmetry. For example, knowing the distance and duration of the move from Point A, or .46 to Point B, or .33 allows Autochartist to forecast the next possible break into the target price at Point D.

The failure to rally to a new high shortly before the formation of Point A gave this equity CFD a bearish bias. The swing from Point A to Point B took out a swing bottom, turning the main trend to down. The retracement to Point C failed to attract fresh buying and the rally stalled. This action set up the forecast for the break into the target price, or Point D.

The break from .46 to .33 was .13. Subtracting this from .43 gives us the target price of .30. Trend traders may want to short the market looking for the break into the target price. This trade will be valid as long as Point C holds as resistance. Aggressive counter-trend traders may want to wait for the .30 to be tested and trade the long side for a rally into the series of Fibonacci retracement levels. This trading opportunity will be valid as long as .30 holds as support. Remember to use stop loss protection whether trading with the trend or against it.

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Wesfarmer (WES.AX) formed a 5-candlestick support base after bottoming near 29.37, creating an emerging falling wedge chart pattern on the 30-minute chart and setting up the market for a drive to the upside. The initial trend was up at the onset of the chart pattern and so is its projected short-term direction. Based on this set-up, Autochartist has determined that the trend change will be a continuation.

The overall quality of the chart pattern is a slightly below average 4-bars. The initial trend which measures the strength of the trend prior to the chart pattern’s formation is rated a weak 3-bars. The uniformity rating is also low at 2-bars. This suggests the absence of equidistant tops and bottoms. In addition, it doesn’t look like the support or resistance lines have had very many tests of their strength. The clarity rating is the highest rated quality indicator. Its 7-bar rating indicates below average “market noise”.

The falling wedge chart pattern is a trending pattern. It is created by a combination of the channel down and the descending triangle. The wide spread between the support and resistance lines makes this chart pattern attractive for swing traders who wish to buy low and sell high. Since the last swing down is 29.98 to 29.37, the market is likely to meet resistance at the 50 percent level of this range at 29.68. Once this level is exceeded, however, the charts indicate there is room to the upside for price expansion. Longer-term traders should keep in mind that a breakout above the resistance line will create a complete pattern and signal the potential for further upside movement.

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AWE Limited (AWE.AX) broke through the resistance line of an inverse head and shoulders chart pattern, completing the pattern and signaling a possible rally into the Autochartist forecast price zone at 1.63 to 1.77. One very impressive feature of this chart pattern is the 154 candlestick length. This most likely means there is pent-up demand behind the move which should help it generate the momentum it needs to reach the target zone.

The overall quality of the chart pattern is rated a slightly above average 6-bars. The initial trend indicator which measures the strength of the trend prior to the chart pattern’s formation is the maximum 10-bars. The initial trend was down at the onset of the chart pattern; however, the breakout is to the upside. This makes it a reversal trend change. The uniformity indicator is rated 6-bars. Uniformity refers to the presence of equidistant tops and bottoms as well as the number of successful tests of support and resistance. The number of spikes and gaps which populate this chart pattern may be contributing to the low 2-bar clarity indicator rating.

The inverse head and shoulders pattern always indicates bottoming action and is always a reversal trend change. This is a precision pattern meaning that the left shoulder near 1.49 and the right shoulder near 1.48 have to be symmetrical with the head formed near .91. Time is also a contributing factor to the success of this chart pattern. The longer it takes to develop, the more likely it will successfully reach its upside objective. The 10-bar breakout rating indicates there is momentum behind the breakout. This increases the odds that the Autochartist forecast price zone will be reached within the allotted time period.

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Newcrest (NCM.AX) broke through the support line of a rising wedge chart pattern on the 240-minute chart with strong downside momentum. The size of the last candlestick is a sign of heavy selling pressure. If the market can maintain its downside momentum along with high volume, traders should gain confidence that this equity CFD will reach the Autochartist forecast price zone at 31.67 to 30.65 within the allotted time period.

The overall quality of this chart pattern is an average 5-bars. The initial trend is a weak 3-bars. This indicator measures the strength of the trend prior to the chart pattern’s formation. Since the initial trend is down and the breakout is to the downside, Autochartist has identified the trend change as a continuation pattern. Uniformity refers to the presence of equidistant tops and bottoms. It also looks for the number of successful tests of support and resistance. This indicator is rated 5-bars. The 7-bar clarity rating means the chart pattern is created with a below average amount of “market noise”.

The rising wedge chart pattern is categorized as a trending pattern. It is a combination of the channel up and triangle. The channel gives it the uptrending slope while the gradual narrowing of support and resistance indicates impending volatility like the triangle. The maximum 10-bar breakout rating indicates strong downside momentum. If this selling pressure continues, the Autochartist forecast price zone should be reached over the near-term.

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