American Eagle Tuesday

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Good Morning and Welcome to the XJO Tuesday Thread
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News for Today (AEST)



The XJO closed higher on Monday, where spread increased and volume was low (but about normal for a Monday).
My expectation was for price to (briefly) sweep lower, and if volume was low and selling pressure was reduced, it would allow price to push higher, and back above the breakdown line.  Well there wasn't much of a sweep lower (apart from a quick point of two immediately after the open), instead price ground higher throughout the session, eventually closing strongly above the previous bars high.  Price action like this is generally a sign of strength, particularly when it occurs surrounding a breakdown zone.   So while there might still be an attempt at a sweep lower and challenge any sellers to come out if the opportunity presents, it seems that last Friday's and Monday's price action suggests any supply still present around this level has been (or is being) absorbed....and so, a sweep lower may be unnecessary now, unless a pause in trading is beneficial for some reason.





Good Trading and Investing