XJO Weekend Charting and Chat - 3rd November 2017, page-2

The XJO closed higher on Friday.
The Index ignored Thursdays poor close, and instead reversed and pushed higher.
It did not however, close above the previous bars high, so this grinding action is likely to continue.
As can be seen on the chart below, there is no still sign of any serious or overwhelming supply being drawn out.
Since breaking out above the four month sideways trading range during October, the index moved sideways once price reached the potential resistance around the 5900 level.  At this point there was some tight clustering of closes as price moved sideways.  Since then the 'pressing nature' towards the upside can clearly be seen over the last week, as price ground up to the 5950 level (the April/May 2017 highs).  Both these indications suggest absorption is taking place.


cheers