If one has a view of weeks to months, this analysis is not for them. Don’t even confuse yourself by reading it to be frank.
Analysis here reflects a short term view of days to few weeks max. which must be noted. Few days ago, I have posted a 10 minute chart of XJO with a view that we had entered into a pullback/corrective period.
Here is the hourly chart of XJO (next higher time frame of 10 Min.)showing the formation of a trading range with a SIGN of WEAKNESS CANDLE after a potential UT ( Up Thrust). There is no breakdown as yet( borderline case may be as of this writing around 13:00 hours 15/12) with a follow through to complete the pattern. Pattern may on the other hand resolve itself with an upside breakout. In short, there appears to be more bearish evidence suggesting a potential breakdown and lower prices, but confirmation of that is yet to be received.
It is important where all this activity is happening on the next higher time frame ( Daily not shown). That is, if we look at our daily chart we could clearly see that we are at a resistance and this is a reaction to that.
No issues with the major bull trend of XJO which we are in if a weekly chart is examined. None at all, which must also be noted. This is clearly a counter cyclical move to that, which shows itself as a correction/pullback. Identifying trends and moves against trends may be a challenging issue for us chart lovers unless we clearly define our operational time frame. This may be another one of those. In this case my analysis time frame is daily to identify support and resistance. Support and resistance are there for a reason which I always observe.
There are inverse ETFs (couple that I know of), which may be worth reading about if a view is turning bearish with the markets in our analysis time frame. I don’t personally mind them and I may utilise them at times like now.
XJO hourly chart below which is courtesy of Commsec.
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