XPJ, ASX 200 REIT SECTOR LONG TERM CHART OUTLOOK.

Media started talking about crash and all the rest with the housing sector from what I read.

Lets re-visit  the long term monthly chart of XPJ for some insights, if any ?  If the markets are forward looking by approx. 6 months are so, lets focus on the June/July period on the chart. Down bar of June followed by a Doji in July which was the low of the current complex bullish pivot on hand ( complex pivot completed in October) .Where did we see this BULLISH PIVOT occur ? At the support line of the long term up trend channel shown in Blue. Is there any issues with the long term trend of XPJ here ? None as of this writing.

Intermediate term trend on the other hand had it’s dashed up trend line in Blue violated while back ( October 2016) which signaled a correction back then. This correction has so far been FLAT (TR) and the boundaries of it are marked with Green support and resistance lines. Once this pattern is resolved in either direction, we would then have a clearer picture of the robustness of the long term trend. A decisive breakdown would signal a top and a reversal in the long term trend,  an upside breakout on the other hand would be indicative of a continuation pattern suggesting higher prices. Fact of the matter is we may be stuck with this flat price action behaviour ( TR) for a considerable period. No one knows how long it may or may not last until it resolves itself.

At present, in the short term, the BULLISH COMPLEX PIVOT has turned the bias to the upside which is also a fact. This said a quick look at the left hand side of the price we see a cluster of short term resistance dating back to late last year. A level worth keeping a close eye on at present. How would I do it ? By switching to the next lower TF weekly.

Monthly XPJ chart below, click on chart to enlarge it.

xpjmonthly03122017

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