There seems to be short term bullish developments which has violated the SUPPLY LINE of the down trending channel looking at this 1000 TICK SPI CHART. This is a short term blow to the bear ( only a short term which may change). The resistance zone, as marked on the chart, if also taken out with a BREAKOUT over the coming days, that may be the signal of a SANTA RALLY resuming. What this tells me that short covering with potential renewed buying over the coming days, if eventuated, may even see us testing the resistance zone of the trading range over the coming days/weeks. This latest development keeps the trading range intact, negating any whipsaw breakdown which we have seen with XJO yesterday. BREAKOUTS as well as BREAKDOWNS are to be treated cautiously if there is no follow through.
Similar price action behaviour is likely with the cash market when trading resumes later on.
There were a BREAKDOWN with the XJO ( ASX 200) daily chart, which may turn out to be a WYCKOFF SPRING of some sort in waiting. We will see off course.
1000 TICK SPI CHART BELOW showing the violation of a SUPPLY LINE as of this writing 05:20 16/12. Will we see a follow through ?
The SMALL ORDINARIES (XSO) has put their bigger siblings (XFL) to shame in regards to performance and providing us with the much needed floor of support. You may check those charts with your software if you wish.
XJO daily chart below. Volume characteristics are still negative must also be said, favouring bears at the close 15/12/2015.
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. The information on this website is no substitute for financial advice.