Monday, June 28, 2010

Possible Triangle Forming



Just wanted to show that a possible triangle is forming and should be at an end, leading to a sharp thrust lower. Above is the triangle illustrated in the Dow. A break above the Wave 'a' high will negate this count. As is, it can bring about a great trading opportunity to get short with a stop just above the wave 'a' high.


PLEASE NOTE: THIS IS JUST AN ANALYSIS BLOG AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. THE DATA HERE IS MERELY AN EXPRESSED OPINION. TRADE AT YOUR OWN RISK.

1 comment:

Wavespeak.com said...

After finally breaking out of a violent eight-week range and setting new 2011 lows early in the week,price responded with an immediate upward reversal and massive near-term rally to move right backinto the range. It’s very disappointing that price was unable to follow through on the implications ofthe large corrective pattern and finally leave behind the indecisive pattern once and for all. But thisaction doees provide important clues regarding the market’s agenda. As discussed on Wednesday,higher prices are now indicated in the near-term and lower levels are indicated on any larger timeframe. Higher price should occur right away. When lower levels might actually materialize on thelarger time frames, well, that’s obviously been a remarkably difficult question to answer.Adding to the rough nature of the current market environment is the fact that we’ve become veryaccustomed to trending market action. You won’t find many time-consuming trading ranges on a pricepattern during the past several years. Instead we’ve lived in a market full of massive trends, either ahuge down move off the 2007 highs or an equally huge up move off the 2009 lows. And make nomistake about it; big trends will continue. I firmly believe that this is the new standard of themarketplace, not the exception.Probably most important during a market environment such as this one is that we keep things in theirproper perspective. I am definitely guilty of getting caught up in the details of the pattern at times, andby doing so we can miss the forest.

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