We broke the wedge trendline on Friday and are below the moving aves.
this is the square of 360 anchored off 1080 and the September low.We have spent 5 weeks unable to get through 1462.5 which is 1/16 extension of the square
this is the square of 360 anchored off 1080 and the September low.We have spent 5 weeks unable to get through 1462.5 which is 1/16 extension of the square
The 360 charting on this rally out of the 2011 lows has really worked out well. How often is an "extension" above or below seen? Can it be similiar to an Elliot Wave overthrow or underthrow? Does it also have the same implications when dealing with a failure? With the Elliott Wave overthrow and failure in an ending diagonal for example, the expectation would be for a fast vast move in the other direction - something similar to the Gann rule of 3.
ReplyDeletedifficult to say HR,I've not read any "theory" on it but I am inclined to view it as an overthrow (or failure)until proven otherwise,so breaking back below 1440 is potentially a bearish signal in my book.
ReplyDeleteI guess from a classical charting point of view we also need to see if the highs from April/may act as support or are broken
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