fascinating chart-where to from here, page-345

Andres, there are a few Technical reasons for me picking .11 as my stop.

1) .11 is the .618 fib level of the .10 - .13 range of the recent short term upleg, in which .11 also coincides with the wave count principle retracement levels.

2) Any breach of .11 is also a break of the primary trend pattern leading us back into a short term downtrend.

3) Short term lagging indicators (Stochastic and MACD)are currently rolling over to the downtrend state and a break below .11 will confirm Bears are back in control short term.

4) The SP dropped below 30 WMA with a Friday close (.115) at the 30 WMA.

5) A daily close above .12 will hint at the short term uptrend resumption again, leading us into Elliott wave 3 "Money Wave".

6) I also learned that why set your stop loss at the same point as other people. This is where the big boys will target their knockout blow to stop people out. If you suspect the trend is weakening, why not set the Stop slightly higher and stop out above the majority of stop loss level, and exit with more profit. I will have to ferret through my books, but think it was from the book "Sell and Sell Short" - By: Dr Alexander Elder.


IMHO - .11 and .13 are now both critical levels toward maintaining upward momentum. A break below .11 and I would consider that the Bears have taken back control and a break above .13 the Bulls will push the price "hard" to the next level.

This is going to be an interesting week with AGM 29th and tenders by 30th.


My gut feel is that support will hold and the uptrend will continue.