End of Week All Ords (XAO) Update 10/06/2016.

A weekly chart of XAO is used with this analysis. Price action has established a tentative UP TRENDING Channel with it’s boundaries within the Overbought and Demand lines drawn in Green. A Sign Of Strength Rally (SOS) on hand as mentioned previously, which may also be seen as the final stages in Phase D  of Wyckoff Accumulation.  A potential BACK UP (BU) or PULLBACK to retest the Demand line is likely. We should also highlight the moving average bullish crossover marked as XO (not French Brandy) on the chart.

There is NO SHORT TERM BEARISH REVERSAL which may suggest a corrective period in the form of a Pullback or Back Up).Therefore I am treating this price action behaviour of the last 5 weeks as FLAT CORRECTION until proven otherwise. We may have a complex bearish PIVOT POINT over the coming weeks which may suggest a PULLBACK, but there isn’t one as of this writing to suggest that.

In summary, XAO is ticking along nicely within a tentative up trending channel, in Phase D of Wyckoff Accumulation. All eyes are on this Brexit Business now.  

The biggest clue of this pattern being an accumulation rather than Re Distribution was from the TENTATIVE BEARISH PRICE OBJECTIVE which we had form the PnF Chart. Any practitioner/student of Wyckoff  Method which does not employ PnF in their tape reading are missing out on the 3D effect which PnF brings in IMO.

That is why, it is important to follow and learn form a true educator like Prof. B.Fraser who employs the PnF charting in Wyckoff. His blog at StockCharts.com clearly demonstrates the importance of  PnF in Wyckoff.  

Enjoy your weekend.

xaoweekly10062016

Disclaimer

All the information and analysis provided on this website is general in nature and for educational purposes only and does not constitute financial advice. No content in any way implies a recommendation to buy, sell, hold or short sell any financial instrument, nor is it financial advice.

Investing and trading in financial markets carries considerable risk, and should always be done in consultation with a licensed financial adviser taking your personal circumstances, financial situation, objectives and needs into consideration.

Links to other websites are inserted for convenience only and do not constitute endorsement of any of the material on those sites, or any associated organisation, product or service. Kazim Agaoglu is not responsible for the content of any site owned by a third party that may be linked to this website and such links are provided as a courtesy with no judgment or warranty being made concerning the suitability, accuracy or otherwise of the content on any such site.

Kazim Agaoglu disclaims any undertakings, warranties or guarantees, express or implied and shall not be liable for any loss or damage whatsoever arising out of in connection with the use of or reliance upon any of the information on this website. The user accepts sole responsibility associated with the use of the material on this site, irrespective of the purpose for which such use or results are applied. The information on this website is no substitute for financial advice.

 

 

Comments are closed.