Bears demand to be Heard - Friday

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Good Morning and Welcome to the XJO Friday Thread

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News for Today (AEDST)
none.... for us....













The XJO sliced down with a wide spread in sympathy to overseas markets, and closed sharply lower on Thursday.

Volume (value traded) was slightly increased to be just above average, and confirms the difficulties the Index is having each time it moves above the Long Term 5903.2 line. However, it must also be said that each time price moves above this line, it will be weakening the resistance that continues to make itself felt at this level.




On the Thursday closing,  five day chart, there is an upthrust type bar which caused a pull back for one week, that then reversed in a potenially bullish fashion.
(Bullish Two bar Reversal =  the high and close of the second bar exceeding the high of the first bar, and would have been a 'text book' reversal, if the second bar had also made a lower low than the first bar)  
The bar which completed today has a spread which narrowed considerably, and initially moved higher, but was unable to hold onto the gains and closed on its low. It appears obvious that the supply coming in above the 5900 level is causing serious difficulties. The supply causing the troubles has previously eased quite quickly below 5900, see what happens this time.











Good Trading and Investing


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