We just went through a very long and wide ranging 5 month long consolidation period. The low (towards the end of consolidation) was around 280 and we ran up to 520. We immediately retraced back to 400 which was right on the 50% line. Therefore, I believe the low is in.
The scenario I submit is that we will consolidate in an ascending triangle for much of December and then break to new highs.
The target is the 1.618 fib extension line around the 668 area. After hitting the target I expect another 50% retracement back from 668 area to 534 area and we could easily dip below and retest the 520 present all time high. Of course, we could establish a significant area of resistance at a different level which could provide a new level of support.
Thanks
The scenario I submit is that we will consolidate in an ascending triangle for much of December and then break to new highs.
The target is the 1.618 fib extension line around the 668 area. After hitting the target I expect another 50% retracement back from 668 area to 534 area and we could easily dip below and retest the 520 present all time high. Of course, we could establish a significant area of resistance at a different level which could provide a new level of support.
Thanks