Good Morning and Welcome to the XJO Wednesday Thread
The XJO closed higher on Tuesday, where spread was about average, volume was above average, and the close was poor (in the bottom half of the bar). In recent days price has pushed nicely above the little absorption zone (red), and has broken back above the previous breakdown line (purple) showing 'intent' without any sign of serious supply being drawn out.
Tuesday's price action and volume however, suggests that supply may have now been drawn out, which is not really surprising considering that price is coming back up adjacent to the older congestion to the left. There does need to be downside follow through in response to confirm the supply drawn out as weakness. And if confirmed as weakness, it would probably see price come back to test the strength of the breakout above the purple breakdown line. I expect there is a pretty good chance this will occur.
Good Trading and Investing
Add to My Watchlist
What is My Watchlist?
