mighty monday, page-18

Just to add to Robbbbb and Treggs comments.

Some US charts (Dow, Nasdaq and Russell) vs XAO attached below.

Comments to go with them:

The US had their expected drop down for the 2nd test of the midpoint of their downtrend channels as expected on Friday. However what I didn't expect was the late rally on the same day. I expected them to close at midpoint then Monday either a little rally then break down or else up up and away.

So this makes it unclear. Has the middle of the channel been tested a 2nd time and therefore there is a high chance of upside breakout Monday? Or does it need to close back down there say Monday night before it breaks out up or down?

In favour of a break up is that the US markets were strong enough to rally off the midpoint intraday and close back at the top plus the Nasdaq and Russell have nudged slightly above the top. Against it is there was no close on the 2nd test and the US markets are short term overbought.

Now XAO (and XJO) are still sitting on only their 1st test of the midpoint of the channel. For a possible XAO/XJO breakout up Tuesday to occur IMO this would be unlikely on the 2nd test.

So to improve the chances of an upside break and to be in sync with the tests in the US, on Monday we would need to open by testing the top a 2nd time (possibly with a gap up), fall back (also to fill any gap) and retest the midpoint a 2nd time, then rally into close so we end up testing the top for the 3rd time ala the US markets.

So if we don't retest the midpoint of the channel for the 2nd time during Monday, IMO this is actually bearish for Mon night as we are unlikely to break out up on the 2nd test. This would imply no US breakout up on Mon night and more likely a fall and 2nd close on the midpoint.

See how it pans out Monday anyway.