XAO Short Term Outlook 25/01/2016.

I am focusing on the last leg down and the current price action behaviour as to what may be unfolding in the short term until the trading range that we have been in since August last year resolves itself in either direction.

The reaction that we had after the SC Rally had been the largest within the range which is bearish. That is the last leg down which started on the 4th of Jan.

The level shown as RESISTANCE at 5050 was tested 4 times there after and the price action as of this writing having another go at it. If we fail and see a new low over the coming days that would suggest further downward pressure and a breakdown. If on the other hand we succeed with a breakout and a follow through thereafter, that would suggest a potential retest of the RESISTANCE ZONE to BEAT of 5300-5400.

Compared to prior rally to the current one, we have already achieved a greater rally which may be seen as change of character ( see prior rally marked with Orange and compare it to current, again marked with orange).

The third scenario may be, another trading range in the short term between 4850 and 5050 levels (between SUPPORT and SHORT TERM RESISTANCE).

At a potential make or break level in other words.



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.

Links to other websites are inserted for convenience only and do not constitute endorsement of any of the material on those sites, or any associated organisation, product or service. Kazim Agaoglu is not responsible for the content of any site owned by a third party that may be linked to this website and such links are provided as a courtesy with no judgment or warranty being made concerning the suitability, accuracy or otherwise of the content on any such site.

Kazim Agaoglu disclaims any undertakings, warranties or guarantees, express or implied and shall not be liable for any loss or damage whatsoever arising out of in connection with the use of or reliance upon any of the information on this website. The user accepts sole responsibility associated with the use of the material on this site, irrespective of the purpose for which such use or results are applied. The information on this website is no substitute for financial advice.






Comments are closed.