Belly Button Fluff Wednesday, page-3

XJO down today -0.61%.



Today’s candle is a bearish engulfing candle. The short-term trend channel has turned down.  Indicators are turning down.

Expect more downside.

Today’s action brings the chart down to a minor support level.  So we might get a pause here, but it is unlikely to prevent further downside movements.

Amongst the blue chips, the big action today was in Telstra (TLS) down -5.59%.  That’s its biggest drop for yonks.

Today’s volume was even higher than the previous day’s volume.

This looks like a final wash-out of Telstra traders.  “Everybody” was selling today.

It might take Telstra some time to come back from this level, but I’ll be surprised if there’s much more down-side.



Look at that volume over the past two days!  Who is left to sell?

The question now is:  Who will step in and buy?

Today’s action would have benefitted the bull case if we saw intra-day buying.  But that didn’t happen.
Wait and see on this one.

RB