Notes on the chart. For a long time I thought a big correction was imminent, but I now think this market is ready to move up to the next level.
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I think there will still be a pullback to the trend line that I drew, which also is he .618 fib retracement at 2066. The waves also look like they need a little pullback, but not going lower, this will create some nice bullish divergence and we should be ready to go tomorrow (7/7/16)
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the last chart was incorrect. I have updated with with two buy target points.
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The Daily Center of Gravity just broke above it's upper trend line that has held for the last 10 months.
Hi! Why do you think the price will plummet before reaching new highs? Because it hasn't broken resistance?
Thanks a lot! :D
gLloW
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Good question, I was kind of thinking the same thing after I posted it... that is a 1.5% fall to get there. I hadn't redrew it's current channel and I had the .618 retracement stuck in my head and my last chart was wrong, I updated it. It might not go to where I am noting, which would form a perfect head and shoulders reversal, but I try to stick with my buy points to reduce risk... if it falls below my buy point, i bail quickly, but if I buy above my buy point and it continues to fall to my buy point, I have increased my exposure to potential loss if my buy point then fails.
As for why it will drop more, first, I don't like the candle formation that it is now while sitting against the resistance, I looks just like it did a few days ago when sitting against that same line. Also, the 1hr time frame just broke the trend on the Ehler's Center of Gravity and also the Chalkin Money Flow (11). And the 2hr COG looks very close to breaking it's trend and I think the 1hr break will cause the 2hr to go over too.
gLloW
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the last chart was wrong, I've added a new one. As for why there will be further decline, the 1hr COG and Money FLow have broken trends and the 2hr COG is close to.. I think this will cause the pullback.
Thanks a lot! :D