TRIO OF PIVOTS POINT TO GLORIES

LAST week the All Ords closed above 5,856 which completed the trifecta by forming daily, weekly and finally monthly pivot points to the upside.

On Wednesday this week the All Ords traded intraday above 6,100 and closed just below 6,100.

I expect we will see a pullback to test the 6,000 level and, after that, the uptrend looks set to continue to the next resistance at 6,500.

If the momentum continues we will likely see a retest of the 2007 high around 6,800.

Although the four big banks had very strong moves on Tuesday,

Commonwealth Bank (CBA) was the only one that just touched the downtrend, whereas the others still have a way to go before breaking their respective downtrends.

How they consolidate after Wednesday’s big move should show us if they are strong enough to continue the move and break their downtrends.

Mount Gibson Iron (MGX), which I bought last week, has had a pullback and moved up again in the past week, forming a higher spike low at 63c, so this is now the trailing stop.

My risk management system has allowed me to buy another stock.

On Tuesday I bought 8,000 Rhipe (RHP) at $1.44 for a total of $11,550, including brokerage.

Initial targets are $1.60 and then $1.80.

Telstra (TLS) is a stock I have watched move all the way down to the $2.57 low in June-July last year.

After a move up to $3.36 in August it slowly moved back down to bottom out at $2.71 at the end of last year.

It has since moved up and last week jumped up to test the strong support level at $3.20.