---------------------------------------------------------------------------------------------------------------------------------------------------- Good Morning and Welcome to the XJO Tuesday Thread
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News for Today (AEST)
The XJO closed lower on Monday, where spread was a little above average, and volume increased to the average line.
The Index was right up hard against the potential resistance of the previous breakdown after Friday's close.
On Monday price pulled back sharply soon after the open, and spent most of the session dancing around Friday's low (which interestingly also happened to be around last Wednesday's high.....), before some speculative buying came in, towards the end of the day. As usual after a widespread downbar with reasonable volume, we should wait for downside follow through in response, to confirm any potential weakness, before jumping to any conclusions.
On the other hand, price did close well within the range of last Friday's bar, which is a positive for a decent downbar (a close below that low would have really inferred weakness), this leaves price in a position to make a short sharp sweep lower to test last Wednesday's bar, or reverse and respond higher.
Finally a reminder, that last Wednesday saw a very large spike in turnover and volume, which was followed by two upbars....and that price action suggested strong buying had come in.......but as is quite normal in this situation, high volume (or turnover) like that is often tested before the market is comfortable to move higher. So I won't be surprised to see this pullback turn out to be a test of supply at that level (or perhaps just the top of that bar), and this pullback will show a two or three bar shakeout in the end, which would serve a dual purpose of testing the previous high volume, and shaking out this trading range, before any serious attempt to challenge the breakdown line above.
(20min delay)