This is a bit of a chart i whipped up tonight. It's using the free charting software from Incredible Charts, hence the data is delayed for 13 hours. I have drawn in a small blue candle for today. XAO opened at 3742 and closed at 3760.
I'm not an expert chart drawer, but i noticed an interesting pattern at 2. The volumes aren't as big for this small period, and we'd have to see the price action touch and possibly bounce off the 3700 level a few times and then push up towards and through 3800 in order to confirm another upwards movement. Whether this would be sustained can not yet be determined by the chart. But, with all the economic data lately, it is unlikely. Please note, i do like to pay attention to the economic data.
So, imo, our confirmation signal (i'm gathering "confirmation" means a direction has somehow been "confirmed"??) would have to be a thrust or movement through 3800 after some consolidation between 3700-3800, on better volume than we've had for the past week.
This is a bit of practice for me. What do you think? Feel free to critque and add your worth...