Weekend Charting and Chat - 2nd June 2017, page-2

The XJO closed higher on Friday, where spread increased substantially, volume reduced, and the close was strong.
After going through what looked like some bottoming action earlier in the week, which also formed a spring.  Price then spent a couple of days going through the absorption process, where it appears many of those who still wanted to sell out, did so.....   And that really big volume spike suggested there was some pretty serious buying done during this period.  
Then after the US accelerated higher overnight, our market was also in a good position to react.  And in response the Index pushed right up to the top of the trading range,  on below average and reduced volume-as the selling pressure was now reduced at this level (because it was all bought two days ago).......and effectively buying everything on offer up to this point.  
Normally the momentum generated by a widespread upbar such as this, will usually carry price higher for another bar or two.....however price is right up hard against the older breakdown line, which should offer some form of resistance.  So i'm not sure if price will just attempt to slice straight up through it, if it will test the level first-before any serious attempt to break through, or pull back within the range and not make a serious attempt at this time.  Perhaps it will depend on both tonight's trading overseas, and whether those who sold out, were those who would have made up the potential resistance at the breakdown line......if so the resistance at that level may only be modest.......guess we will find out Early next week........