The XJO closed higher on Thursday, breaking above the period of...

The XJO closed higher on Thursday, breaking above the period of potentially 'bullish absorption' marked in green.
** for @h00ts - I believe this is what Oscar often calls his 'F' flag - which is what I call 'bullish absorption' (this is not officially a Wyckoff or VSA principle) - I outline the general properties as I see them in the links of this post  **
With some buying in the background, followed by a period of bullish absorption, this is looking much more positive for the future.
Spread (or range) reduced on Thursday, and volume increased to a little above average, which illustrates that supply was being drawn out.  Price is now adjacent to the mid October highs, so some increased supply at this level does not surprise.
It seems the market was attempting to absorb its way through the supply on Thursday, however if this supply becomes overwhelming, I expect a (brief and shallow ??) pullback of some type.
The response on Friday will likely be obvious in the first hour or so.  Personally I expect if price attempts to move higher, it will close poorly at the line around ~5950, and if it pulls back it will be relatively modest (the real move will come next week - either way)


cheers