I will keep it SIMPLE and clearly state that, the trend of XAO is UP and STRONG. Trend is defined by either the Red or Blue 45 degree trend lines on the chart. Above Blue trend is UP. Below Red trend is DOWN. At present price action is trading above Blue trend line indicating XAO’s trend being UP.
Second important factor, which is unique with Point and Figure charting are the counts, bullish or bearish. At present wonderful software @ StockCharts.com has a Tentative Bullish Price Objective of 7250 which I will show on the chart how it has been calculated using Vertical Count Method. Will it be met ? I don’t know. But it is valid and active. Close at 5100 is required to negate this count. Until then it stands .
I always keep reminding myself , who am I to argue with the tape (chart) when things are as clear cut as this ? I try and leave my emotions out and be guided by the price action alone not the count or anything else.
Chart is courtesy of StockCharts.com
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