Small ordinaries have been a good performer after the SCLX since late August. That tells me that our market is RISK ON at the moment. Without a money flow and risk for appetite it would not have been able to reclaim 50% of the lost territory as well as staying above it’s 50 period SMA on this daily chart. This sector has been range bound since 2013 and the low of 2013 was respected on 25th of August.We may continue in with this range bound price action for quite a sometime. But the fact that the support of 2013 was respected, may be interpreted as renewed buying by Smart Money ( Funds, big institutions and like).
First to Monthly Chart to see our position in the big picture. The moving average is a 12 period (equivalent to 200 day on daily) and is flat indicating a trendless phase. I have drawn support and resistance lines which shows the boundaries of this trading range clearly on EOM closing basis. Lets wait and see which way the breakout may be over the coming weeks/months ?
Now to the Weekly to highlight the SUPPORT/RESISTANCE LEVELS within this Trading Range.
On the DAILY CHART below we are now registering higher peaks and higher troughs which is a classic definition of a Dow Theory Medium Term Uptrend.A SIGN of STRENGTH in Wyckoff Analysis is also clear, suggesting a potential test of the RESISTANCE ZONE shown on the weekly chart may be on the cards.
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