----------------------------------------------------------------------------------------------------------------------------------------------------- Good Morning and Welcome to the XJO Wednesday Thread
The XJO closed higher on Tuesday, which offers some confirmation that (against the odds) Mondays poorly closing bar was indeed potentially absorbing supply.
Spread increased yesterday, and volume remained a little above average.
Price briefly turned lower after the open on Tuesday (but it never looked seriously weak), then the Index reversed and moved back within Mondays range (where the supply had been bought on Monday), and eventually closed just below the old trading range lows.
Sadly, Tuesday's bar did not close above Monday's high (which would have added a potentially bullish influence), and price also stalled right at the resistance line, which leaves it in a bit of a vulnerable position.
So what we have since last Thursday, is two bars where some support arrived, then a tricky looking absorption bar, and a confirmation bar.
This suggests that price should at least make an attempt to accelerate higher, however with the previous weakness above and the position of Tuesday's close it suggests the Index may find the going fairly difficult.
That said, if you look at the All Ords chart (further below), price never broke below the old trading range lows, but instead found support at those lows, which makes the chart look much better (and safer). .
. The bars and volume appear to make more sense on the All Ords Chart,
Thursday saw support come in, but volume was still above average.
So Friday saw a similar supporting bar, but this time volume was reduced, inferring that selling pressure had reduced.
Following that came Monday's potential absorption bar, which rightly had increased volume over Friday.
Then Tuesdays bar accelerated higher and closed very slightly above Monday's high (which was nice).
So this looks much more (short term) bullish than the XJO, perhaps apart from the increased, and slightly above average, volume on Tuesday.....
(20min delay)