This is a little experimental analysis speculating on the next move up. This ignores possible sideways action and a whole lot of things Im not experienced enough to take into account. But I think it could mark out a few key points on the way up.
Ive drawn over the last few days upward action (bottom red and blue triangles) and cloned them up. As you can see the possible resistance levels on the way up seem to correlate somewhat with the previous dowards action's support levels over the previous weekend.
Let me know your thoughts
Comments
geometricThinking
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I think your methodology is sound, but I see it as being a bit more simple than that. Gann felt that the 50% mark is crucial (amongst many other gems he brought to bear). The run from 87 to 110 in just a couple days marks a 23 point move. If that impulse move represents 50% of the initial move of this bull, which is likely, then add 23 more points to 110 to get 133. (You got to the same conclusion using the cloned triangles, of course.)
There are other reasons to suspect that area as well, of course, not the least of which is that the market will not forget how it fell off the cliff at 136 just a couple weeks ago. Traders will be taking profits ahead of 136.
There are other reasons to suspect that area as well, of course, not the least of which is that the market will not forget how it fell off the cliff at 136 just a couple weeks ago. Traders will be taking profits ahead of 136.