XJO 0.27% 7,080.8 s&p/asx 200

Tug o War Monday

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    Good Morning and Welcome to The XJO Monday Thread

    The XJO closed slightly lower on Friday, where spread narrowed, volume was below average, and the close was poor.
    Price initially attempted to push higher, however a combination of reduced demand, and a resistance zone above took its toll, and eventually forced a close near the days low.  A bar such as this infers potential weakness, but needs to see 'clear' downside follow through in response to confirm.
    I have been suggesting that sideways is the most likely direction for a period, while price recovers from last weeks sharp fall, and attempts to consolidate.
    Friday's bar probably indicates that price may come back a little, but not substantially, because the volume was not particularly high.
    I expect it was more a lack of demand, and not severe selling pressure that shaped the bar, therefore I am not expecting this to indicate overwhelming weakness, or anything too dramatic at this stage.
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    Good Trading and Investing

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