Fibonacci 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 higher on Tuesday, where spread and volume both increased, and the close was high.
With a large shakeout and some consolidation in the background, that potential strength allowed the Index to accelerate higher and issue a strong challenge to the overhead resistance.  While the volume was the higher than the previous two days, I anticipated it would be even higher in order to push up through that potential resistance. It suggests that supply (selling pressure) was not as strong as expected at the breakdown line.  I imagine that a significant proportion of the stale supply forecast to be waiting at that level, must have been removed in the shakeout.
So now, barring a complete bearish reversal bar (which is always possible, but is fairly unlikely), price can begin the absorption process within this new level.  The momentum generated may carry the Index up to the next breakdown line in the short term, but don't be surprised to see price test the breakout at some point in time either, should the opportunity arise.

Spoiler : ***a random example of the Golden Ratio***

and for those who want to know more about the Rabbit Question.....





Good Trading and Investing

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