SP in one year?, page-14

Please don't base any investment decisions on this, just my estimated targets using point and figure charts, all just for fun in the spirit of the thread, but this does follow some simple rules.

It's based on the law of cause and effect, 1 of 3 Wyckoff laws, the other 2 being supply and demand and effort and result. It's starting point is based on the first sign of support in a downtrend, that due to a Change of Character, changes into a sideways range, here being the PS or preliminary support, and it's from here we can take the longest count, there are smaller counts that can be taken as well and these can often be areas that see some consolidation during markup. This area of PS/Preliminary support, SCX/ Selling Climax, AR/Auto Rally and ST/Secondary Test form what's known as Stopping Action and is considered the start of a sideways period that is finally confirmed as an accumulation or distribution with markup or markdown outside the trading range.

A Cause must form before there will be an Effect. And the Effect will be in proportion to the size of the preceding Cause. A large Cause will produce a large Effect, a small Cause results in a small Effect. Accumulation and Distribution phases are periods of Cause building. The Effect is the subsequent Markup or Markdown.
AHZs longest cause has been building for almost 2 years now, so would be considered a large cause which should produce a large effect. These targets are by no means specific but provide general areas to be on the lookout for weakness in the trend.
The count below is based on an assumption of this being an Accumulation, which still needs confirmation, hence the upward targets, a box size of .01 and is a 3 box reversal, (the boxes being the O's and X's) so the boxes won't reverse until a clear 3 boxes in the opposite direction.
A true count is taken once we have confirmation of the Change of Character changing the trend direction with price leaving the trading range, so it would also be a bit larger once that takes place.


DYOR and Happy New Year, Cheers