Blog Archive

Tuesday, May 31, 2011



Today Price hit my resistance lines as expected. Looks like the market may try one more pop to around 1348-1350 before it fails short term. My expectations are for the market to regroup around 1334 before heading toward the top tine of the Green Fork.

I have changed the colors of the forks in order to see the charts better. The Red fork is now a very dark green. I did not want to completely remove it as it still has a slight chance of holding. The Blue lines of the wedge are gone. It looks like that was a good call. Price traveled about as far as the widest part of that pattern which is exactly what should be expected. The convergence of horizontal resistance, the width of the triangle and the top of the forks makes me believe the market will regress from this area. The Blue Fork appears to still need it's lower channel satisfied for symmetry and balance so I expect the market has further to go after a rest.

I have looked to see where the next low volume area lays, but it's kinda difficult given that we have not had a lot of activity above this level, but 1360-1365 looks like a low spot to me. That agrees with the forks and the Fibonacci Ratios as it would add another 38% to the length of this run up since the low n 5/24.

I wrote a couple new studies today and made them available on Share-ToS.



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