We have two AB x 1.272 = CDs and an AB=CD terminating within a tight PRZ right
into our Support area. Whether or not one would be considering initiating a long position,
anyone currently short would certainly want to be aware of the potential for reversal
(or the halting of the selloff) in this area. I would be looking for divergences given
that technical tools ...
With the help of the two abcs contained within the CD leg of
the Shark, the PRZ was narrowed considerably and eliminated
the .786 (Cypher) and .886 (Shark) areas from consideration.
The dual abcs put us near/at the 1.13 area, and our turn
came here. We now need to eclipse the upper "b" and 50%
to see this small rally to continue (assuming of course we
reach this ...
It appears CL is working on a contracting diagonal. Our recent peak
measures as an AB x .618 = CD, and basis the next leg measuring the
same, this is confluent with the falling lower TL. I would view this as
a target area for a "5th touch" within the apparent falling wedge.
This is another application of something I'm finding
on some of the Sharks/Cyphers I look at. If present,
an AB=CD (or alternate) can help determine whether
its likely to be a Shark or Cypher, and helps (imho) to
"fine tune" the PRZ area.
I believe should we reach this area, it should offer resistance at a minimum,
potential for reversal for pullback. Would be looking for a move down towards
area of largest "B". There will likely be a bullish shark setup at this area (this
would be the "C" point if not mistaken. I will be watching this for just that reason.
Regardless of whether the potential ...
When this ratio is falling, the Gold Miners Stocks are stronger relative to the S&P 500.
Note how low this ratio was at the end of the last big metals rally in 2011-12 period.
You can also see the 2016 metals rally (ratio falling) quite clearly here. If in fact
we have double topped in this ratio, then things should be looking UP for the metals.
The next thing ...
These are some observations I find to be helpful for those that trade either/both
harmonics. Regardless of whether the Cypher is "harmonic" or not, I can certainly
provide a number of examples of these that turn virtually right on the .786 retraces,
(with the .886-1.13) never getting a sniff. So, I do not dismiss these out of hand.
I try to focus on possible ...
While this is not a specific tradeable (that I'm aware of), it indicates the
likelihood of Silver outperforming Platinum on a relative basis for weeks
and months ahead. This would be something to keep in mind when
confronted with a long setup for both or a short setup for both. Should
the ratio reach the PRZ, at that time you can assess whether to reverse
Apparent retest double bottom at C. With the Gold/Silver ratio
appearing to have topped (rising wedge diagonal), this bodes
well for Silver relative Gold (which occurs in metals rallies). Until
proven otherwise, I see the bias in Silver to the upside. I will be
looking to ride it up to the Dual PRZ, and assess at that time
if/when it arrives.
Also note that C of ...
This has the look of a diagonal (rising). With that assumption,
I have shown estimated target areas. We have reached the 1st,
but if correct, I suspect we will rally, then either retest T1 or
move on down towards T2. Potential short trade coming in
the days ahead.
In light of my long term potential bearish shark (currently around "C"),
I believe there is a long bias for months to come in Beans. Thus, opportunities
to get long should be sought. We have an AB=CD and an AB x 1.272 = CD tightly
confluent just ahead. This could certainly be viewed for a potential short. I
view this as an alert that a pullback may be forthcoming, ...
The C point of this potential bearish shark has just occurred at support. I believe
this should give a long bias to Bean trades in the coming months/years. Stoch
is divergent and still in buy position. I will attempt to follow up with lower time
frame patterns that offer areas of long entry as they occur. Very tight PRZ if/when
we get there. Early pullbacks at ...
While this will take some time to set up (assuming the PRZ area is reached),
it may well offer a nice opportunity for a longer term trade. If my assessment
of the diagonal is correct, a long position initiated at (d) could see a nice move
up to (e) and shark PRZ.
This bullish shark completion will likely be the 3rd "touch" of bottom support
level, as well as a move to the .618 retracement of the last move up on
the weekly chart. This may well be a point from which a new uptrend
may develop to break out of the falling channel.