charts & thoughts (october), page-27

On Tuesday we had a potential sign of strength (Narrow spread down bar on an increase in volume, 7.9mil, close in the middle) & we responded positively to that sign today.

However, we had pretty reasonable volume on both the downbar today and yesterdays up bar.
and that up bar today didn't have much result for the effort (volume) put in.

There is still supply present, so I would expect a down bar tomorrow or shortly, narrowish spread, close middle to high & hopefully on lowish volume, down to around the middle levels of Tuesdays bar ($1.43 - $1.455).

In other words a test of supply.

This is my prefered scenario, but I could also be wrong and Wednesdays narrow spread and close in the middle could be caused by absorption of the supply from the left, getting ready for a push higher.

But I lean towards the test all the same, in some ways it might depend on what the overall market is up to.

cheers