Last week, we warned about the potential price decline down to the 1-4 line. Additional comments suggested that further downside was evident based on our predictive analysis and target definition, suggesting that the 1-4 Line would probably be used as a "back-stop" to that decline.
As of this mid-week market close, price strictly followed that speculative scenario, especially as of today's two 4-hour candles pointing the way to probably further decline.
As indicated before, some unwinding is still quite possible at this point, and the structure defined in the chart are there for educational edification and guidance.
A primary target defined as "176.19 - 25 JAN 2014" remains an ever so close possibility, especially as we come to the second half of this trading week. One possible scenario here would be a Friday consolidation at the target level and a Monday market open back at 180.53. What ever that scenario, the predictive analysis has remains unchanged by internal moves in the charts, fundamental moods in the market or magical brooms in the sky.
OVERALL: Until we receive a bearish reversal confirmation, the "Neutral" qualifier will remain unchanged. Once the confirmation occurs, a "short" qualifier will replace it. Therefore, our directional bias, forecast and targets are unchanged. In fact, the latter are coming ever so closer - Week closing at targets?
Cheers,
David Alcindor | 4xQuad.com
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