At the close on 06/01/2016 we have a BEARISH REVERSAL to the downside at the RESISTANCE ZONE of the trading range, which we have been in since late August.
As per previous post, XAO have retraced 50% of the last December move, as of this writing. Some support, at least temporarily, is expected at current levels which may or may not be forthcoming.
The long term DEMAND LINE ( Trend line in dashed Blue) had seen whipsaw violations, but never a close below it. An end of week close below that level, would also be seen as an added bearish development, if on hand.
A clearly defined SUPPORT zone is shown, which had four tests so far. 5th test over the coming days/weeks may be on the cards. A decisive BREAKDOWN with a follow through, if on hand, would signal further weakness/lower prices. But for now, within a Trading Range, as shown on this weekly Time Frame chart, trends as well as countertrends in shorter time frames like Daily/hourly charts as well as BEARISH SHORT TERM REVERSAL ( intra week for now) may summarize the price action behaviour of XAO.
5963.50 was the April High x 0.80= 4770.80 , close below this level, I would call it a BEAR MARKET with XAO, until then, a deep correction.
Weekly Chart of XAO below.
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.