Really Fat Pizza, page-935

The XJO closed lower on Wednesday
This was not a surprise after Tuesday's strong gains (buy the offer style).
Spread and volume both reduced as price came back, and price remains comfortably within the previous bars range.
Price would need to clearly break and close below yesterday's low to indicate a possible change in behaviour.
There are three charts tonight, the first one below shows a reverse up trending channel, which seems the best fit right now.  There is more room towards the upside on this chart, and the expectation would be for price to move up and eventually tag the highs of the channel.
This chart supports the 'absorption' theory I have been suggesting.
The second chart shows a regular up trending channel, which I don't think fits so well, and suggests price rejected the supply line of the channel today.
Below that is a chart showing a trend line from the mid-June highs, and suggests price broke out yesterday, and today was testing the breakout for strength.
All three are valid to some extent, it will be interesting to see how they play out.




cheers

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