Control by buyers is still maintained, by just. In terms of commitment buyers appear to be losing it and less keen. This is how the individual weekly bars may be read in simplest form. what does this mean one may ask ? I would make it simpler by saying INDESICION at current levels ( zone of 5500) may be on hand as far as the buyers are concerned. We need to see more result ( larger ranging bars with high closes) from effort ( volume) to indicate that the buyers are back in full control and committed.
The resistance provided by the prior high & congestion zone is now being felt at current levels which may require a further time to overcome.
The new dashed up trending channel drawn with dashed Red support and resistance lines are the medium term boundaries of the price action, until proven otherwise. This means that the price action is likely to zig zag higher within this channel.
What else can be said ? I would personally want to see expanding ranges with high closes to indicate that the buyers are back on board committed and in full control. It doesn’t mean that it will or won’t happen which must also be said.
We must remember that, this is a young and vibrant bull run which may require more time to sprint like Hussain Bolt does. Once we see a full commodity bull run that is what we are likely to see ( XJO being copy cat of Hussain Bolt). For now a low momentum uptrend is what we have.
I am keeping an eye on the precious metal Gold as well where it is currently testing it’s 200 day SMA, a zone where some preliminary/climactic support may be found. Will do an update on that front as well if and when the potential stopping action is on hand, which may be soon.
Weekly XJO Chart below.
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