XJO (ASX 200) Daily Chart Outlook 07/01/2017.

This analysis is a very short term bar component analysis which may or may not be an interest for some. I will focus on the latest price action behaviour to try and read the meaning of  the last few bars/candles.

Contracting ranges in an uptrend, what do they mean ? Buyers who are in control are less keen. Why ? I don’t know the answer to this.

Close  of the price at the last candle may be read as neither side is in control at the close ( close only 3 points higher than open and in the middle of the range).

To me, Bollinger Bands = An active/adaptive trend line. I will not try and interpret the reading of the bands but rather to point out that a new 12 month high at the last session occurred within the bands, not hugging of any kind, unlike the candle with marked with number 2 ( seven sessions earlier).

Is there a bearish reversal like PIVOT or CLOSING PRICE or KEY ? NO not yet, but if I see one over the days , I would take notice of it.

In short, word of caution at current levels where a pullback of some sort may bring the price action to the mean of the bands. The reading of the mean is currently at 5653.

Daily XJO chart  at close on 06/01/2016.

xjodaily06012017

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