GU and the rest of the xxx/usd assets have been forming obvious corrections this month
Why is it a correction and not a major top.
Well, corrections...
1. begin with very little consolidation (vs peaks that contain big periods of consolidation before reversing).
As you can see GU only consolidated for 2 days before coming down.
2. they usually contain 1-3 corrective bounces. We got 1 arguably 2 from this correction
I marked the corrective bounces up on the chart.
3. They end with a bottom pattern (usually a double bottom or inverse head a and shoulders)
We re looking at a pretty clean inverse head and shoulders...with us being in the process finishing up the second shoulder now.
This pattern will lead us to new highs above 1.32 in the coming weeks..before assets peak and with a market downturn that will be accompanied by a recession and possibly a credit event
I will publish an Idea for the big short when the time comes.
Follow me to make sure you don't miss that and other big opportunities coming.
Thanks!
Why is it a correction and not a major top.
Well, corrections...
1. begin with very little consolidation (vs peaks that contain big periods of consolidation before reversing).
As you can see GU only consolidated for 2 days before coming down.
2. they usually contain 1-3 corrective bounces. We got 1 arguably 2 from this correction
I marked the corrective bounces up on the chart.
3. They end with a bottom pattern (usually a double bottom or inverse head a and shoulders)
We re looking at a pretty clean inverse head and shoulders...with us being in the process finishing up the second shoulder now.
This pattern will lead us to new highs above 1.32 in the coming weeks..before assets peak and with a market downturn that will be accompanied by a recession and possibly a credit event
I will publish an Idea for the big short when the time comes.
Follow me to make sure you don't miss that and other big opportunities coming.
Thanks!