Chip and Dip Wednesday

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Good Morning and Welcome to the XJO Wednesday Thread

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News for Today (AEDST)




The XJO closed 'dead smack bang level' on Tuesday, and you won't see that happen very often on the Index.
Spread narrowed, but volume increased a little (over Monday's very low volume), and the close was right in the middle.
This bar and volume is not giving anything away........
It shows a potential lack of demand for the upside, but also a possible lack of selling pressure to the downside.
This is sort of an 'indecision bar'......although as there was no positive response to Monday's bar, it may reduce the upside potential in the short term.

Tuesdays bar is one of those mysterious or cryptic narrow spread bars where prices barely move from the previous close, and in the Wyckoff lexicon, this kind of day is sometimes referred to as a 'hinge' - from which a larger swing may occur.  
The hinge itself does not reveal a direction (the context is that price has come to a dead centre), but it warns of a possible larger move in the near future.  
Perhaps, the only help with direction is the immediate background, where price appeared to be absorbing the supply surrounding potential resistance, but this process has appeared to stall in the last few days.....watch the price action closely soon after the open today or tomorrow to see if we are given an early hint.










Good Trading and Investing

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