Monday, August 14, 2023

14/8/23. Monday Evening Finspiration Report

 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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