Go for Broke Tuesday

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Good Morning and Welcome to the XJO Tuesday Thread

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News for Today (AEST)





The XJO finished slightly lower on Monday, after attempting to rally during the session, but failing to hold onto any of those gains by the close.  Spread narrowed (compared to last Friday), and volume was very very low (lowest this year, and lowest since the Christmas/New Year period).  That very low volume was never likely to be enough to sustain a decent rally & suggests very little appetite for higher prices on Monday.
The price action does resemble last Wednesday, where the Index rallied in response on Thursday for the end of month and quarter trading.
Sometimes a bar of this nature can be absorbing supply, but that is more often when price is in an uptrend, or with a strong positive event immediately behind it (either of which we don't have at this time).  So that appears less likely this time around (but is not impossible either).
To reverse this near term downtrend, or the recent sideways action, price would probably need to rally and close above 5098.2
All that said, the watch is now on for follow through to the downside, and while price has found some support at this level so far, the failure to successfully accelerate away from the danger zone leaves price vulnerable to a breakdown (and the longer it takes, the less likely it is to happen at all).   And finally, a breakdown and close below the line @4992.4, will most likely see a deeper pull back.








Good Trading and Investing

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