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.
All the information and analysis provided on this website is general in nature and for educational purposes only and does not constitute financial advice. No content in any way implies a recommendation to buy, sell, hold or short sell any financial instrument, nor is it financial advice.
Investing and trading in financial markets carries considerable risk, and should always be done in consultation with a licensed financial adviser taking your personal circumstances, financial situation, objectives and needs into consideration.
Links to other websites are inserted for convenience only and do not constitute endorsement of any of the material on those sites, or any associated organisation, product or service. Kazim Agaoglu is not responsible for the content of any site owned by a third party that may be linked to this website and such links are provided as a courtesy with no judgment or warranty being made concerning the suitability, accuracy or otherwise of the content on any such site.
Kazim Agaoglu disclaims any undertakings, warranties or guarantees, express or implied and shall not be liable for any loss or damage whatsoever arising out of in connection with the use of or reliance upon any of the information on this website. The user accepts sole responsibility associated with the use of the material on this site, irrespective of the purpose for which such use or results are applied. The information on this website is no substitute for financial advice.