From last few days XJO has come up with strength trying to defy the bears traps that wanted to push down down into the abyss. But at the moment the price is at a critical point: 200MA which has been historically the separation line between bull and bear market. Does XJO has strength to break that magic line and go up towards the 7k levels? I have been keeping an eye on this index to know the directions of the whole Australia stock market as we know it. Below are the highlight of the bulls strength vs Bears strength:
- 50MA acting as support: we saw last time price bounced on this magic line
- PSAR flipped to the upside which is inherently
- Price above the Golden Fibonacci. Hopefully it will act as support
- Price above historic resistance/support at 5969
- Price attempting to break 200MA this is if and only if the price rips up that 200MA.
- Bears have one point too, the uptrend line has been broken few days back and it may be hard to reclaim it probably we will have to draw a new uptrend line.
For those late to the party and who want to go long better wait for the price to close above the 200MA at least 1 day then try to get in with tight stop loss.
I will keep you informed as this market keeps swinging up and down.
Stay safe and dont forget to smash the liked. I am scanning the market for the next stock of the week as I have been giving you the best of the bests so far.