I hate to pee in everyone’s cornflakes, but I think this bears mentioning. Every log trendline we’ve formed so far this year has bounced three times, then broken through on the fourth attempt. The only unresolved trendline left to retest at this point is the support of the long-term wedge. I’m not saying we necessarily dump from here, but if we do, I doubt that line will continue to hold.
I tried to illustrate this concept visually. I apologize for the graph looking so busy. However, if you count the bounces along each color-coded trendline, you will see 3 consecutive bounces followed by a break in each case. The wedge support in orange is the only trendline so far not to complete this pattern.
I tried to illustrate this concept visually. I apologize for the graph looking so busy. However, if you count the bounces along each color-coded trendline, you will see 3 consecutive bounces followed by a break in each case. The wedge support in orange is the only trendline so far not to complete this pattern.