Hi folks, I've just been looking at the XJO weekly chart and...

Hi folks, I've just been looking at the XJO weekly chart and note this week's candle created a bearish engulfing pattern combined with the previous week's candle. These always require confirmation (which I suppose should go without saying...what technical signals don't require confirmation, really???), but possibly mars a short term top on the weekly chart. Looking back over the weekly chart, dating back to last April's market high, this occasion marks the 4th time we have a full bearish engulfing candle marking a short term high (see circled in blue) and in addition there have been 3 other occasions where we can see the body of the previous week's candle engulfed but not the high or low, and these also mark a short term top (see circled in orange):



Confirmation of the bearish engulfing signal would be if price fails to breach the mid-point of last week's bar (5540).

Cheers, Sharks.