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MontyMacht
Jul 7, 2021 10:54 PM

DJI-1M-Jul82021-Normal-Bearish Short

US 30Currency.com

Description

My greatest success so far was correctly predicting the upper boundary of DJI a few months ago as enclosed in the head of the Crashing Bird. Yet, I was a bit naive to think that a sudden crash would come so easily, even though the fundamentals were volatile at that time. Fast-forward to today and both SPX500 and NDX are soaring so high, yet DJI has been bouncing up and down in an overly flat range. Given that DJI is the least volatile of the indices, it is perhaps the one with the least noise, and this should be enough to show that the market drive upwards is unsustainable, Indeed, it is not only the fundamentals that are suggesting this, also not the RSI on which the spiral clearly indicate a reversal, and also not the volumes which are clearly way downwards, but the aesthetics of the bird itself which show a system still intact and whose boundaries are quite strong for the months to come.

Tracing the green intersection on the prominent purple curve allow me to create more curves that should touch troughs in the future. This yielded a white curve which indeed touched the trough of the past 2 months, but which is expected to touch a red line to come. This is emphasized by the special point it creates with the yellow upper curve, and from which a fitting spiral clearly indicates that the current month is red.

The amount of the crash should still be near the eyes, most probably on one of the very special pints with multiple intersections, but this should be double checked on other time frames for better prediction.
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