A lot rests on this sector as to what the broader XAO does. The down trend since April of this year still in effect and we are in the trading range ( trendless phase) since late August. Price action will have to make a move up or down out of this trading range sooner or later. That will be the confirmation whether or not this trading range is an Accumulation or a Re distribution.To have an upside bias I need to see the PINK DOWN TREND LINE decisively violated to the upside which holds. If we see a BREAKDOWN and the violation of the support (zone of 5650) set since late August that may suggest lower prices may be on the horizon.
If this correction/downtrend which started in Mid.April of this year is another XABC type, it is expected to end around current levels. We will see.
But in the short term, bias is to the downside with another potential support test during the course of the coming week.
Unrelated to the analysis of XFJ but there is a very good article @ StockCharts.com by respected analyst Gatis Roze “The Secrets I learnt from Jessie Livermore” which may be worth reading. Also, Bruce Fraser has another post in his blog of “Wyckoff Power Charting” in regards to redistribution which is another must read in my opinion. Both are FREE and from a well respected practitioners/educators of TA.
May I also add, if someone is looking for a financial advice, you are at the wrong place, nothing of that sort on this website for you. Please read the disclaimer.
Daily Chart of XFJ below.
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