Cook Something Bold and Pungent Tuesday

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Good Morning and Welcome to the XJO Tuesday Thread

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News for Today (AEDST)




The XJO reversed & closed sharply higher on Monday, where spread and volume both increased, and the close was high.
I don't find the price/volume action altogether convincing yet, and the trend is down, so I won't be surprised to see some further volatility before a new direction is resolved or the current one resumes.  The reversal occurred adjacent to the mid September lows, and has comfortably closed above both last Thursday and Friday highs, which at first glance appears potentially bullish.
However, to actually reverse the current downtrend, the first step is for price to clearly close above the high of last Wednesday's widespread downbar.  This would also require price to overcome the expected selling pressure or resistance of the previous breakdown line (purple line just above the current close), a level that would generally cause price some difficulties.  So until the Index can regain those levels,  I consider this more as a sideways action, or possible relief rally.








Good Trading and Investing
  
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