Weekend Charting and Chat - 9th December 2016

Gee, what happened to Santa ???




Have a good weekend......I'm not sure if I will get another update done before I leave, but suffice to say that this chart is still under a strong influence from the massive shakeout a couple of weeks ago. This background strength from the shakeout is likely to continue until a serious supply event takes place.
Price eventually accelerated away from the danger point this week, after initially dipping lower. Enthusiasm waned a bit on Friday, which is not surprising after a Thursday's strong move, however the momentum generated kept the Index rolling forward for at least another day. I won't be surprised to see the line at 5606 tagged before price pulls back to any serious degree. Although I do think there is a decent chance the recent breakout will be tested for supply at some stage (no idea how deep or shallow the potential testing may be, however the depth should offer some insight into the current strength in the market moving forward).