Only minor short term bullish development in the current week with XJO was the closing price reversal (see Blue box). Whether or not this leads to a bullish pivot of some kind over the coming weeks remains to be seen.
It is important to see a weekly bullish pivot to potentially signal a counter move against the monthly bearish pivot confirmed last month.
These ( bullish bearish pivots or alike) are all short term developments which may be seen as nothing other than noise by some. Is there a major trend change ? No, not at the moment and it may not be for a fair while. Therefore, until evidence of that (major trend change) is on hand we are in a secondary reaction, correcting within a major uptrend.
We could speculate further on what may or may not happen based on technical evidence on hand and potential formation of pattern/patterns. Some of our forecast we get right some we don’t. Therefore, let the price dictate our analysis not forecast or pattern of any sort.
Esoteric Elliot Wave Analysis may be employed to tell us our potential position in the big picture. There after we look for confirming or non – confirming evidence by the price action. An ABC correction to set the floor for wave 4 of some degree in Elliot Wave at present ? May be and potentially yes. I am working on this scenario personally. Fact is, we would not know for sure until it is done and dusted and confirmed.
To what matters at present. Because of the closing price reversal my short term bias has now turned mildly bullish. Over the week ahead, I am watching the low and high of this bar for further clues.
Is the cup 1/2 full or 1/2 empty ? Knowing our analysis time frame/frames may help a great deal in giving the correct answer to this question.
Chart is courtesy of tradingview.com
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