Selling like Hotcakes - Wednesday

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Good Morning and Welcome to the XJO Wednesday Thread

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News for Today (AEST)





The XJO closed higher on Tuesday.
Price was higher early in the session, although the Index appeared to find it difficult to maintain the initial rally, as the day unfolded.   
Spread narrowed considerably and the volume actually reduced, which was a surprise, as Tuesday would normally see a strong increase in volume over Monday.

There is little doubt supply was drawn out on Tuesday as price moved higher, however the lower volume, narrower spread & higher close, suggests that there was a distinct lack of demand for higher prices across the market.  And it was this lack of demand ('no oomph') which made it difficult for the Index to maintain the higher prices from earlier in the day.  A lack of demand can be seen as a sign of potential weakness, particularly as a confirmation after previous weakness has been seen.

I see the recent horizontal support level around 5039.6 as one of the more important levels on the medium/longer term chart.
And Tuesdays bar appears to be yet another weak bar, within a series of weak bars, all showing how the recent price action is finding it more and more difficult to accelerate away from the danger point.  
Eventually, if this continues, the support being found around the danger point will become exhausted and price will again breakdown.

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Good Trading and Investing

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