S&P/ASX 200 (ASX:XJO) - Disclaimer - Monday, page-2 - HotCopper | ASX Share Prices, Stock Market & Share Trading Forum

Originally posted by Jako64 ↑

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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)
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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.

Daily
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Weekly
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Good Trading and Investing

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Expand

Welcome back Jako,

Yearly Highs and Lows

Staying above zero, supporting the move in the XJO all looking pretty "steady as she goes".

Candles

A series of shooting star and hanging man candles indicating some susceptibiltiy to a downturn, but Fridays marazubo has removed any chance of a confirmation - that and the fact that the move punched through the resistance at 5225.

Fridays candle occurred on pretty much average volme and volty. It's interesting to note that the average volty is dropping, indicating that this move could be a steady sort of move.

RSI

This has come into the OB range of the RSI. So either it will reverse, or the trend will continue (ha! they done come more ambiguous than that!). What I mean to say, is that at this point the OB"ness" of the XJO should make itself clear with reversal candles ( or other technical paraphenalia) . If it fails to do so, assuming a trend is the safer option.

Cylce charts (not shown) along with the Yearly Hi/Lo summation support the conjecture that the market will continue to rise.

Wheres @piotrvip ? - he's ver good at reading RSI type stuff

Have a great week everybody.

MFx