mighty monday, page-22

G'day guys, brilliant work as usual, big charting thanks to Robbbb and Treggs and Danube and Zanzibar.

Just thought I'd throw my own thoughts into the mix here.

I can certainly see both scenarios for upside and downside in the short term (two weeks) for the XJO.

Short term Upside scenario

Robbbbb our beloved perma bull's upside scenario certainly has legs from my pattern knowledge, and could be supported from MACD divergence theory.

The potential for us being at the start of another small upside leg is good, based on the daily... with the possibility of a three wave corrective structure being formed, and the third wave of a relatively small EW being formed.

If this scenario is to eventuate, with upside from here, my thoughts are the upside target would be around 4100 or so.

We do still have forming MCD Divergence in the MACD MAVs after divergence in the MACD histograms.

Ultimately though, if we do see an upleg now, with the price level of 4100 being reached, then I suspect that this will mean we will drop back down to retest and possibly exceed the low of the 21st of november, which with the oft repeated turn date looming around the 18th of December, could see the beginning of this decline then.


Short term Downside scenario

This is a scenario that I like somewhat more, and would make for a nice setup for a big old Whooska on the daily going in to the new year.

Currently price on the daily is still below the 21/20 moving average. If a retest of this MA fails, then I expect us to revisit the low of the 20th of november.

If this occurs, then a good setup for an upside whooshka would exist, with the possibility of a small bolt to the upside on the daily from this point, followed by a little retrace, and then a large bolt upside going through the early months of the new year.... basically a Whooska on the daily.

I'd like this un!

Time will tell of course. Charts soon based on these scenarios.. have to do the three S's before going to work, and will post a chart just before I leave.

;)