I see the whole formation as an IHS on it's side. One box represents half the total formation. The other box is a clone of the first and represents the second half. They are a rough timing tool. The beginning and middle of the formation must first be found to project an ending . The yellow line helps but still subject to interpretation. I suspect the formation will end as it began just below the yellow line at the green circle. The red lines are at potential demand/ support points. The whole thing happens to coincide with head and shoulders reversal at the top of chart . I see a target near 5.00.
Update study chart: despite a weak performance and some bearish signs, the chart is showing some good strength. The bearish harami was not confirmed, the gap is still open showing some power. Any consolidation above 6.63 is a good sign even better if the price is not retesting levels below 7.04. The breakout of the TL is a good reversal move and an impulsive (upside) move would likely to follow. As in short term, the chart is showing weak bearish signs and probably next week is a consolidation period. The chart shows good strength and the support at 6.63 seems to be strong enough to keep the price going upward.
Hello sublimares, I am wachting and following your ideas and chart analyses about nok for quiet some time. It seems that you are almost right about everything. Do you think the pullback-dip is over by now or do you expect a further dip to your suggested 6.11-level. Cheers Christian
Hi Christian- not following NOK at the moment but I had a look at the chart. I will probably post an updated chart this week. The last 2 candles define a bearish harami pattern. I cannot say that I expect but it would be nice to consolidating at the last swing low- 6.6 and not lower. I do not know if the dip is over- there are many signs that it might be- but few days of confirmation might help.I do not believe- just an opinion, an important move will take place this week. Probably weak, bearish and not below 6.60. I am going to give few days. Just an opinion and not advice. I hope it match your own analyse and if you do see things different/disagree please let me know.