There Is Very Good News In Today’s Drop. Let Me Tell You Why.
Yesterday I posted a chart saying we were at a Triple Resistance right around 9600. I expected a bit slower of a rise into Saturday when the Gann Matrix Indicator I am developing said we would start to see a possible one day pullback. While the indicator has been very good at picking times down to the day and even hour, it is not perfected and can mean a general time frame give or take a few days. This is why the indicator takes into account traditional Technical Analysis as well.
So let’s take a look. We had triple resistance at 9600. (See last chart for the call on that). We hit 9600 or thereabouts and at the close of the daily candle yesterday we began the pullback.
First support is 8800 to 8900. This is a Fib support level.
Second support is 8400 which is Elliot Wave (not shown on my charts) and Tom DeMark Count Line (the dotted green line at that level on the chart.) This is DOUBLE support, similar to the triple resistance we just had.
It looks like this is going to be a quick pullback to somewhere between those two areas.
The REALLY GOOD NEWS is that these are all above the 50 Day Moving Average. Since we will hold these supports our next rise up should start to turn the angle of the 50 upwards and that means a MAJOR TURN OF TREND TO BULLISH AGAIN.
Now let’s take a look at my Gann Matrix Alignment (TM) indicator. While not shown as it is an astronomical/astrological indicator (which WD Gann used with 90% accuracy and amassed a very large fortune) we have timing for Wed, Thurs and Friday with a break on Saturday and a return on Sunday. Since regular Technical Analysis calls for the support levels above, we can expect that this breakdown in prices will end during those days, possibly capitulating on Saturday, then a new cycle up from there.
It was the speed of the last rise which threw previous timing off. Remember that while Gann can be highly accurate to the day, it’s use is giving us a range of time, within a few days, so we can prepare for the turn. The indicator was right that a change in direction was going to occur, and coupled with Technical Analysis it has.
Now the timing is simply saying this downturn will end no later than Saturday/Sunday and then return to an uptrend.
The uptrend should clear us back over 10k again, perhaps as high as 12k. Then we will need to reevaluate going forward.
Conclusion: Long Term Investors Should Hodl; Short Term Traders would have entered a short yesterday at resistance and look to cover at between 8800 and 8400, setting stops appropriately.
This is not a return to a bear market, simply a pause before heading higher. We will see new All Time Highs by 12/18
Twitter @CaptainScio
(Not To Be Taken As Investment Advice)
So let’s take a look. We had triple resistance at 9600. (See last chart for the call on that). We hit 9600 or thereabouts and at the close of the daily candle yesterday we began the pullback.
First support is 8800 to 8900. This is a Fib support level.
Second support is 8400 which is Elliot Wave (not shown on my charts) and Tom DeMark Count Line (the dotted green line at that level on the chart.) This is DOUBLE support, similar to the triple resistance we just had.
It looks like this is going to be a quick pullback to somewhere between those two areas.
The REALLY GOOD NEWS is that these are all above the 50 Day Moving Average. Since we will hold these supports our next rise up should start to turn the angle of the 50 upwards and that means a MAJOR TURN OF TREND TO BULLISH AGAIN.
Now let’s take a look at my Gann Matrix Alignment (TM) indicator. While not shown as it is an astronomical/astrological indicator (which WD Gann used with 90% accuracy and amassed a very large fortune) we have timing for Wed, Thurs and Friday with a break on Saturday and a return on Sunday. Since regular Technical Analysis calls for the support levels above, we can expect that this breakdown in prices will end during those days, possibly capitulating on Saturday, then a new cycle up from there.
It was the speed of the last rise which threw previous timing off. Remember that while Gann can be highly accurate to the day, it’s use is giving us a range of time, within a few days, so we can prepare for the turn. The indicator was right that a change in direction was going to occur, and coupled with Technical Analysis it has.
Now the timing is simply saying this downturn will end no later than Saturday/Sunday and then return to an uptrend.
The uptrend should clear us back over 10k again, perhaps as high as 12k. Then we will need to reevaluate going forward.
Conclusion: Long Term Investors Should Hodl; Short Term Traders would have entered a short yesterday at resistance and look to cover at between 8800 and 8400, setting stops appropriately.
This is not a return to a bear market, simply a pause before heading higher. We will see new All Time Highs by 12/18
Twitter @CaptainScio
(Not To Be Taken As Investment Advice)
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