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Good Morning and Welcome to the XJO Monday Thread

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News for Today (AEDST)




The XJO closed higher on Friday
Spread was very narrow, and volume only reduced a little (although about average overall), but interestingly the lowest for the week.
It seems that after a week of strong gains, there was a certain lack of demand for higher prices on Friday.
The recent narrowing spreads suggest this move higher maybe running out of puff a bit, and may need to reset & retest.
I continue to expect a pull back of some sort, the depth of which (when it eventually happens), will help to allow an estimate of the strength within the current market's uptrend  (or not....).


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Last week I looked at the Weekly All Ords chart (XAO),  as it appeared much more clear to read than the XJO.
At the end of last week it suggested that price may reject at the 5041.6 line, when price came off sharply on an increase in volume.
However, price reversed this week in response, closing (quite strongly) above the high of the previous weeks bar, and in turn suggesting that there was absorption (buying) in last week's downbar on high volume.
This is a potentially bullish reversal.
At this point there is probably a  50/50 chance that the 5041.6 line will be tested from above.









Good Trading and Investing
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