SPI is down around 65 points overnight, suggesting a lower open with XJO by around similar amount on Monday. With the expected GAP DOWN in the price action, we are likely to experience a potential climactic price action behaviour in the next few trading sessions. A potential SELLING CLIMAX to be confirmed if and when on hand.
The demand line ( trend line in Blue) drawn from Feb. Low clustering with the 61.8% Fib. retracement in the zone of 5250 is where we may find support. A zone worth monitoring over the next week.
Since Feb. Low, two past corrections found support around the 61.8% Fib. Golden Mean Retracement Ratio. Would this correction follow suit ? We will know in time.
Worthwhile studying the price bar of 24/06/2016 and the subsequent price action behaviour. We may be in for a similar behaviour in the short term again. On 24/06 a VERY BEARISH BAR was on hand, with NO FOLLOW THROUGH. On Monday (12/09), where XJO closes, and what unfolds over the following few sessions thereafter is likely to give us further clues as to where we may be headed in the short term.
In short, SHORT TERM DAILY BIAS is STILL NEGATIVE until proven otherwise. I am at the lookout for the next short term BULLISH PIVOT POINT or a similar reversal bar. If and when on hand, that may suggest a potential end to the correction.
Updates to follow.
Enjoy your weekend.
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