snippets from my weekly stock market report, page-7

Sarala,

As per the monthly close chart I posted, there are IMO key XAO support levels at 3425 and 3000.

IMO the monthly chart needs to show a close preferably on, or possibly slightly below, either of these support levels on Friday to show it has tested that level.

It then gives it the opportunity the following month after the test to show it has successfully held that level and therefore build a base for a decent rally.

IMO if it closes above 3425 then that says to me it has not properly tested the support level yet and so will test it by closing at or slightly below 3425 (or 3000) in a subsequent month (eg. December, January).