The Ozzie maarket fell heavily today. XJO -0.86%.
Here's the chart for STW (a tracking ETF for XJO):
STW broke to the downside of the bear flag that formed over the past seven days.
Volume was higher than seen in the previous seven days - that suggests the bear flag is being fulfilled - lower prices ahead.
The chart finished at horizontal support so we might get a short-term knee-jerk reaction to the upside. STW also bounced intra-day from the 200-Day EMA.
Today's action also brought the chart down to the Point of Control on the Volume Profile shown on the left of the chart. POC often acts as a magnet to prices. It is also a level at which we often see a shuffling about of the price.
If a bearish downside medium-term movement is to occur, STW would need a break below the Kumo Cloud. STW is sitting above that at this stage.
My gut feeling is we'll see more medium-term downside movement - but until a see a break below the Kumo Cloud, I'll hedge my bets.
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