XMJ - Aust Materials - Bearish - Breaking down & out of Channel
What we are witnessing here is an 8-9yr bullish upward channel being broken and now tested. Like all good things, sometimes, they have to come to an end. Is that happening now? Lets break it all down.
What we are witnessing here is a very bullish upward channel that has finally hit its 'Top'
The ceiling has formed and we have also created a triple top formation. The third and final hit came from a very weak rally that failed to break the previous high's and has subsequently broke down and out of a very strong upward channel.
Usually when this has happened before, we get a strong swing to the upside and shown in the first 2 green highlighted zones. However, the third failed, and the wave that formed following the third 'break down', failed to gain momentum and has resulted in a change of character and is gaining momentum to the down side.
Right now we are experiencing a 'new channel' forming, first time creating a lower level, matched by the previous low at the bottom.
The pattern forming at this zone is looking interesting and as can clearly be seen, we are resting on a pivot point. Now the big boys that are holding up this sector, BHP, RIO and FMG, are all showing signs of a pull back to test the Golden fib on each of their charts. That may cause a "fake out" type play on this chart, where it looks like we are about to completely 'Shit the Bed',
Only to bounce back up and away, recovering strongly and continuing to move to the heavens.
Time will tell at this point, but expect some downward movement in the interim.
What we are witnessing here is a very bullish upward channel that has finally hit its 'Top'
The ceiling has formed and we have also created a triple top formation. The third and final hit came from a very weak rally that failed to break the previous high's and has subsequently broke down and out of a very strong upward channel.
Usually when this has happened before, we get a strong swing to the upside and shown in the first 2 green highlighted zones. However, the third failed, and the wave that formed following the third 'break down', failed to gain momentum and has resulted in a change of character and is gaining momentum to the down side.
Right now we are experiencing a 'new channel' forming, first time creating a lower level, matched by the previous low at the bottom.
The pattern forming at this zone is looking interesting and as can clearly be seen, we are resting on a pivot point. Now the big boys that are holding up this sector, BHP, RIO and FMG, are all showing signs of a pull back to test the Golden fib on each of their charts. That may cause a "fake out" type play on this chart, where it looks like we are about to completely 'Shit the Bed',
Only to bounce back up and away, recovering strongly and continuing to move to the heavens.
Time will tell at this point, but expect some downward movement in the interim.
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