xjo weekend zoomba lounge, page-37

Hi folks

Well big move down last night to the bottom of our picture perfect bear flag and volume picked up which doesn't bode well. Combine that with a failure on the 8th to get back upto the top of the flag on what was essentially no demand and I think we could be looking at an increased possibility of some strong downward movement next week. Just goes to show all the rhetoric from Obahma made no difference at all in the short term, but then when have fundamentals ever made a difference anyway?

Chart shows accumulation and distribution zones and that distribution zone at the top is a biggie extending right back to Feb, which means the smart money spent some time bailing from their positions with an expectant move down. Well they are getting that. Question now is are they going to be buying back in bigtime in the lower accumulation zone, looks like that has started with the high volume coming in on the 8th August. Expecting a further shakeout down to where the high volume came in last year though (circled). As for the bear flag target being down lower, who knows? Personally I don't place much credence in that, and you can see on the chart a bear flag from last year and the downside target was never hit. Much prefer to use previous support and resistance areas and that blue area is going to be strong support imo.

Cheers