Thursday, October 20, 2011


The sideways correction continues and the market is drawing a triangle in which the market will eventually break out of to the upside. The TA was successfully tested today so we are now at what could be important levels for the next wave up. I do however have to point out that we continue to be overbought so I can't really picture what sort of rally could come out of this triangle. I think it would be best for the market to make an Ascending triangle so that we can at least project part of the next bullish wave. Maybe we'll get to the 200 day ma and then do a proper Fib correction.. hard to say at the moment but I am looking at the test of the lower trendline or the next test of the TA to go long and stay with the TA.

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