XAO Weekly Chart Update 07/01/2016.

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.

xaoweekly07012016

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