AKE Chart, page-834

At this point, I doubt that this was a channel widening. Accordingly, I am expecting a lower low and lower high tomorrow. Depending on the overnight action I am guessing a range between, 890 - 959, whose channel would deliver 848 in a few days. I am strongly expecting, but again subject to the overnight action, that it will start lower tomorrow fall a little, not quite reach the bottom of the channel, rise to around 940, possibly 950, then pull back a bit. The strongest channel marker is the lower one (890) but to get there it needs to go through a couple of stops - 910 and 900, also if it rises over 924 early it will have to break through 920 again. So I am favouring an early attack then a buy-back in preparation for the next onslaught and as a hedge over the weekend. In short I am expecting a green candle by days end, but not one that breaks the down channel yet. If I revise this thinking early enough before tomorrows opening I will update here. I do not expect it to open down and just keep falling. The alternative where it opens above 924 and climbs for the early part might see it hit the top of the channel, but again I don't expect it to stay up and would anticipate a significant pullback. My instinct is to favour a price around 940 to trade out and a price around 890 to 900 to trade in, but I stress that this model is entirely subject to the overnight US action.


If trading this I think the important thing is not to panic, as I do not believe this is anything more than a completion of the wave 4 (ABC) correction pattern. How low it goes is very hard to determine as it has already gone lower than it should have in the A wave. It is reasonable to expect a mild correction therefore. I have selected 848 as the next fib stop, but would think that anything from 870 down should be considered as a potential bottom.

If it blows through higher that today's high tomorrow, then it isn't s correction, and if it fails to sink below 924 then it will create a significant quandary, and we will have to get the chickens out and read the entrails.

All in my opinion, of course. Not advice, just for entertainment, ... except the bit about the chickens: That is definitely advice..