Lately the XAO has been climbing up on the daily chart, which could lead some to believe the market may be turning. The weekly however shows us a different picture.

The last 4 weeks have been a sideways movement. Now it is clearly at the top of a down channel. The higher probability move would be down next week as it continues to respect the down trend line. There is a support line around the 3350 mark that has been holding the XAO up. If this holds and the XAO breaches out of the down channel, the next expected resistance would be around 3680, but until there are clearer signs of this happening, the XAO is more likely to continue with the current trend of down.