For the purpose of examining the current short term outlook of our market XAO/XJO, I am using this 1000 TICK SPI FUTURES chart as a proxy.
For me to confidently say that we are out of the woods in the short term, I need to see another HIGHER PEAK ( see HIGHER PEAK 2 ?) .
Expected SUPPORT at current levels found so far and bounce from here over the coming weeks leading up to Christmas is likely. We will see if that may be the case.
Currently, after registering a HIGHER PEAK late last month, we are in a corrective mode of the 2nd leg up. A decisive break of the SUPPLY LINE of the DOWN TRENDING CHANNEL ( Dashed Blue trend line) may suggest a test of the October high ( Higher Peak as shown on the chart). If successful on that front, that would turn things back to FULL BULL MODE giving us the 2nd HIGHER PEAK as well as validating the UP TRENDING CHANNEL in DASHED PINK. For now, cup is 1/2 full in my opinion.
As for the On Balance Volume, it is also in a nice rising trend as shown on the bottom window.
SPI 1000 TICK CHART BELOW.
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