xjo weekend zoomba lounge, page-118

Hi exfiles

Great article and totally agree with everything the author has said there and those secondary tests and springs below previous volume coming in are crucial things to look for regarding a rally. If high volume isn't tested by a dip back into it or indeed price is taken below a high volume bar and "sprung" back above it then you should be very wary that you'll get much of a run. Smart money will shake the weak holders every chance they get and what better place than at the lows when everyone is in a doom and gloom frame of mind..

Have a look at the 3 charts i posted up yesterday you'll see a potential test forming on the monthly, it's really clear on the weekly where the price has dipped back into the potential area of supply dictated by the high volume bar in August and it as done that on lower volume. Means no supply present. On the daily you can see a good example of buying coming in on the way down and then they thoroughly shook out the market over a period of 4 days, dipping the price down below the previous high volume bar and then back up again quickly. On the weekly we can see this as a "spring", confirmation of that is needed by a higher close this week. It all augers well for higher prices going forward for a while though.

By the way ignore the Elliot wave count on chart 2 it's wrong (cheers adventra09 for the heads up on that) I believe wave 5 has already occurred and we have had an ABC correction since.

Cheers