After re claiming 62% of the lost territory, XSO (Small Ordinaries ASX) stalled at the Fibonacci Golden Mean of 61.8% as well as the resistance provided by the 200 period daily SMA. Both of these cluster in the zone of 2110.
After the IMPULSE move in the current month of October, a well deserved rest perhaps (digesting the gains). It would be a very bullish development if we see the price action re claim it’s 200 day SMA ( Red SMA ) and trade above it.
We are also about to enter into a yearly BULLISH SEASONALITY CYCLE (as of 1st of November) which should be a positive going forward. This cycle lasts till Late April. Month of November, is likely to be a flat month for XSO with slight bearish bias and that of XAO ,please revisit the previously posted XAO seasonality histogram chart.
Breakout zone (2000-2020 level) @ AR may be re-tested going forward which should act as SUPPORT.
Seeing the XSO outperform XAO, may be interpreted as a RISK ON in our market.
EOM Review of the world markets would also be done over the weekend.
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