The XJO closed higher on Thursday, as the buying support continued.
Spread however, narrowed considerably, but volume only modestly, so some increased supply (selling pressure) was being drawn out today. The narrowing of spread is often the first indication that an equilibrium between supply and demand is getting close.
To explain - at some point, the higher prices will draw out sufficient supply to balance demand, and the price rise will begin to stall out. The stall in price rise will then see profit takers emerge. Those taking short term profits will cause price to roll over a little and that will encourage further supply. Sellers will then begin to gain the upper hand (overwhelm buyers) and take control, and price will move lower for a period again (until the mirror image opposite occurs again, and demand begins to overwhelm supply...and so on...).
I expect the market will encounter increased supply (selling pressure) as price moves towards the next important level above @~5300
This level is expected to be stronger the the previous one @~4800
To overcome this expected resistance, a large increase in demand would be needed (which is certainly possible, but appears less likely).
If price does turn and begin coming down soon, the depth and duration of the next down wave will offer some important information as to the markets underlying sentiment.
cheers
.
- Forums
- ASX - By Stock
- Really Fat Pizza
XCL
australian commonwealth government loans
The XJO closed higher on Thursday, as the buying support...
-
- There are more pages in this discussion • 200 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add XCL (ASX) to my watchlist
(20min delay)
|
|||||
Last
0.0¢ |
Change
0.000(0.00%) |
Mkt cap ! $0 |
Open | High | Low | Value | Volume |
0.0¢ | 0.0¢ | 0.0¢ | $0 | 0 |