Trend Line Analysis
1. Possible Fan forming, see three bright green trend lines
2. Close below 23395 with extended break confirms
3. Further breaks confirms major white colored channel may be penetrated next
4. So far, index not been able to penetrate and close beyond median of major white-colored channel
5. Previous indicates strong possibility channel will be penetrated
6. If so, further downside moves may result
7. If not, look for bullish trend and major channel to continue
8. Look for intermediate strength resistance at median near
9. Previous, if rally continues and closes beyond may be followed by major resistance at upper trend line near 24000
Investment Strategy
1. Rectangle Continuation forming
2. Rectangle started on 11/02
3. Close above 23600 confirms pattern
4. Rally should continue and close above 23660
5. Symmetrical triangle started on 10/24/17
6. Breakout on 11/02/17
7. Measured move ends at 23700
8. Resistance at 23700
9. Close above 23800 should find resistance at 23900
Defensive Strategy
1. Close below 23480 busts rectangle, consider reducing long position
2. Rectangle Measured move to 23425
3. Trend line Support at 23425
4. Close below 23400 and further breaks confirms trend line penetration
5. Consider closing position
Possibilities
1. Rectangle bust could be signaling HS Top being formed, see gold-colored pattern
2. Confirmed if close below 23250, consider going short
3. Close below 23250 busts symmetrical triangle described above in Pattern Analysis
4. Going short advised
5. Busted Rectangle measured move to 23025 if break continues.
6. Support at 23000 closes 10/17 gap.
7. Support at 23000 after gap is closed.
1. Possible Fan forming, see three bright green trend lines
2. Close below 23395 with extended break confirms
3. Further breaks confirms major white colored channel may be penetrated next
4. So far, index not been able to penetrate and close beyond median of major white-colored channel
5. Previous indicates strong possibility channel will be penetrated
6. If so, further downside moves may result
7. If not, look for bullish trend and major channel to continue
8. Look for intermediate strength resistance at median near
9. Previous, if rally continues and closes beyond may be followed by major resistance at upper trend line near 24000
Investment Strategy
1. Rectangle Continuation forming
2. Rectangle started on 11/02
3. Close above 23600 confirms pattern
4. Rally should continue and close above 23660
5. Symmetrical triangle started on 10/24/17
6. Breakout on 11/02/17
7. Measured move ends at 23700
8. Resistance at 23700
9. Close above 23800 should find resistance at 23900
Defensive Strategy
1. Close below 23480 busts rectangle, consider reducing long position
2. Rectangle Measured move to 23425
3. Trend line Support at 23425
4. Close below 23400 and further breaks confirms trend line penetration
5. Consider closing position
Possibilities
1. Rectangle bust could be signaling HS Top being formed, see gold-colored pattern
2. Confirmed if close below 23250, consider going short
3. Close below 23250 busts symmetrical triangle described above in Pattern Analysis
4. Going short advised
5. Busted Rectangle measured move to 23025 if break continues.
6. Support at 23000 closes 10/17 gap.
7. Support at 23000 after gap is closed.
Trend Line Analysis
8. Look for intermediate strength resistance at median near
Should be
8. Look for intermediate strength resistance at median near 23850