XJO Weekend Charting and Chat - 28th July 2017, page-4

Trying to get a handle on what’s going on with XJO by looking at the monthly. Very revealing IMO:

1. Ascending triangle (green lines).
2. Look at the hot reactions to the 6000 horizontal line in 2008 (rectangles). First reaction was 950 points, then the second reaction was a whopping 2900 points.
3. In 2015 the reaction to the 6000 line reduced to 1250 points, which is still big.
4. Those previous big reactions to the 6000 line makes our current dip down from that line seem very minor, and a sign that the sensitivity to that line has lessened.
5. Two dojis sitting on the blue simple moving average makes that fast MA look like support. Those dojis look very tame compared to the weekly or daily.
6. We have closed five months in a row above the dotted horizontal support line (assuming we close above it on Monday).
7. Tails below the rising green line show strong support around 5000.
8. Three months in a row we have closed below the two black angled lines.

Conclusion:

Ascending triangle, reduced sensitivity to 6000 line, dotted line support (5695), tails around 5000, and fast MA support are all bullish signs. The closes below the black angled lines are bearish. Overall, the positives significantly outweigh the negatives.