Predicting Market Behavior…Blindfolded! (Part 3)
03/04/2009 12:01 am EST
Now let’s go back to looking at the charts one at a time.
Price has tested the blue, up-sloping Median Line twice. It has also left triple bottoms that will act as support below where it is currently trading.
Where is price headed? Is the probable path of price higher from here or lower from here?
Price was unable to break above the blue, up-sloping Median Line, and after consolidating, it traded lower.
To make it easier for you to see both the up and down side potential of this market, I added back in the red, down-sloping lines and left the blue, up-sloping lines as well.
Price is testing the blue, up-sloping lower Median Line parallel. You can see by the two tests of the blue, up-sloping Median Line that this line has shown us where price should run out of directional energy. Will price stop now at the blue, up-sloping lower Median Line and turn back higher, or will it break through the blue lower parallel and trade lower?
More tomorrow in Part 4.