XJO 2.35% 6,673.3 s&p/asx 200

French Fries Wednesday

  1. 19,112 Posts.
    lightbulb Created with Sketch. 3681
    120716 french fries Wednesday.png



    ------------------------------------------------------------------------------------------------------------------------------------------------------
    Good Morning and Welcome to the XJO Wednesday Thread

    ------------------------------------------------------------------------------------------------------------------------------------------------------


    News for Today (AEST)
    120716 news.png



    The momentum generated on Monday carried the XJO higher again on Tuesday, especially earlier in the session.
    Spread narrowed, but volume increased, and the close was poor.
    Note, that while volume increased, it was actually below average overall, so the push higher was not particularly strong or forceful.
    The poor close illustrates the difficulty price had while making an initial challenge to the freshly exposed congestion to the left.
    Tuesdays bar, on an individual basis suggests some sort of pivot high may have been established, and price may come back and test the breakout.
    Alternatively, in an uptrend and especially soon after a breakout, a bar of this type can appear as an absorption bar, with the dual benefit of flipping out short term and momentum traders (who may sell early into a rally, thwarting upwards progress), before continuing to accelerate higher, and in turn (briefly) wrong footing the traders.
    So keep an eagle eye out during the first hour of trade today, as the full intention of Tuesday's bar will most likely be revealed during that time.

    120716 xjo.png


    120716.png


    Good Trading and Investing

    .

    Last edited by Jako8557: 12/07/16
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.