Wednesday, February 19, 2014

A major trigger for determining that the metals and miners will end in an ending diagonal.

This is an important trigger level that I am watching.  I don't expect the long green trend line to be broken. I expect that the coming retrace will slide down the outside of it, using it as support on the way down.  The typical reversal points will be mid channel or bottom channel or throw under.  Only 2 of the 3 were shown below because they are most likely for this kind of volatile stock ETF.  Don't be faked out if there is a move more than half way down and then a rapid move up but still within channel.  That will be the B wave of the a-b-c that I expect to take us to the bottom.  It should occur after 5 waves down so that a-b-c counts 5-3-5.

In either case, when that top down sloping resistance line is broken again, Katy bar the door with gold and silver bars.  And miners.


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