------------------------------------------------------------------------------------------------------------------------------------------------------- Good Morning and Welcome to the XJO Monday Thread, & it's Good to be Back, although not particularly well rested.......haha.
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News for Today (AEST) In the US, some states celebrate the Columbus Day holiday.
The stock markets are open, although they sometimes see reduced trading volumes.
The XJO closed higher on Friday.
Since I have been away for a week or so a summary of the recent trading may be in order.
My last commentary was for Thursday week ago the 1st of October, which saw the completion of a slightly unorthodox potentially bullish reversal (over three days), where price closed nicely above the high of the 29th September bar.
I also pointed out the potentially bullish Monthly bar for September in Weekend Charting and Chat, which saw a down bar with a much narrower spread, on an increase in volume.
Then on Friday the 'daily' bar pulled back on reduced volume, suggesting a lack of selling pressure.
This left yet another weekly bar that closed back above the important 5039.6 longer term line, after slicing below it during the week, but recovering strongly, and forming a (rough looking) potential shakeout of the recent trading range.
Following all that, on Monday last week, price accelerated higher in response to the reduced supply (selling pressure) seen on the previous Friday.
And then came two pairs of what appear to be absorption bars (Tuesday and Wednesday together, then Thursday and Friday).
Tuesday saw price push up early, only to close poorly by the EOD (which at the time would have left a few bulls a bit anxious), however there was no follow through to the downside on Wednesday, and price eventually closed higher for the day.
Then Thursday saw a similar bar to the previous Tuesday, which again closed poorly, but saw no follow through to the downside on Friday and eventually closed higher, and more importantly, it closed well above the high of Thursday's bar.
This left a weekly bar that saw price accelerate higher with a wide spread on reduced volume, in response to the (rough looking) potential shakeout the week prior. (the weekly chart follows the daily below) The low volume suggests that there was very little supply selling into the rally, and the widespread removes (or reduces) the likelihood there was a lack of demand.
(20min delay)