Support and Resistance on the XJO Market

Hello, Traders!

Here is a weekly XJO market update.

There is a nice support and resistance fall on the XJO Market weekly chart. Recently, the support level has reached a 4,555 average.

The XJO market is still weak and still struggling to break through. A trend line is still hitting the 4,600 level as resistance. We are in a bit of a “do or die” situation. However, there is a support level going at about 4,200.

Breakthroughs on the XJO Market

Are we going to break through or not? We don’t really know. By looking at a time frame of the past year, if we do begin to break above the level of 4,600, then we are likely to run back up to 5,000. But, we are really struggling at the level of 4,500.

Looking at the XJO Market daily chart, there is an overall sideways pattern not unlike what the US market is seeing. The chart continues to hit an overall resistance point of about 4,555.

“Channeling” on the XJO Market

A closer look at the XJO Market daily chart reveals a bit of an upward “channel” with support levels bottoming out at 4,200 and rising to just under that 4,555 mark.

The question really is: Where do we go from here? John feels that if we break above the 4,600 mark for resistance, we’re likely to hit the top of the trend line at 4,700 or more. If things reverse, then there should be a short-term downturn at the 4,450 mark.

Looking at the bigger picture for the XJO Market, if a downward trend continues between the 4,000 and 4,500 mark, a big downslide could be coming similar to what the market saw in November of 2008.

Going back to the XJO Market daily chart at the 200 moving average, what most fund managers choose to use, we find the 200 moving average at around 4,250. In the past, this moving average saw a massive fluctuation, began moving sideways, and now appears to be moving straight back up again.

In looking at this XJO market, John says to make sure you do your homework and continue to monitor your charts on both an XJO Market daily and weekly basis.

See video of this update here!

I hope you enjoyed this XJO Weekly update.

Tags: ASX XJO, XJO, xjo weekly

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