Excuses - Tuesday, page-4

Monday Evening Liqueurs. 16 November, 2015.

XJO down -0.94% on relatively light volume. Range compared to the previous day was narrow. In fact, the range today was the narrowest since 1 September.



Well, here we are, Old Friends, back down there at that famous support level.

I suppose if you keep on chipping away at a wall, eventually it will break down. But , if it doesn't, then i guess the barbarians have been repulsed. (For now.)

A break above the pivot at 5385 on 26 October would count as a decisive repulse of the barbarians.

The following is a Heiken Ashi Chart for the Materials Sector (XMJ) which has been one of the weakest sectors in our market.:



There is no sign in the XMJ chart that this is about to revert to the upside. We need to see a doji candle to suggest that.

Indicators, however, are suggesting the possibility of an upside move. DZS is actually tilted slightly up while the Index is heading sharply down.

RSI is in deep oversold territory. A move back above its lower Bollinger Band would be a short term buy signal. But - be prepared to trade it - this is not buy/n/ hold stuff.