Maximum pessimism??, page-50

I think people are putting too much emphasis on the share price decline is purely a result of tax loss selling. The larger picture is we have the BREXIT vote in just over one week which is playing havoc with markets, currencies and commodities and we have the POO having just topped and correcting. The next few weeks will determine whether the oil price correction is a correction in a larger move to the upside or whether the top just put in was in fact the end of a corrective rally of the prior down trend and the down trend has resumed. From an Elliot Wave perspective there are three potential wave counts of which two need to be eliminated. Two of the wave counts require a correction to either the mid to low $40's and then the POO to rally to mid $50's to low $60's whilst the third wave count has the POO heading back in to the $20's.

From a technical analysis view point in regards to the FAR chart we need the price to start heading North now. We have a potential double bottom at 7.6c which is also roughly the .786 fib retracement of the last rally leg from 6.6c to 12c. FAR has shown correlation to the .786 Fib retracement level in the past with the prior rally from 5.6c to 10c in Aug 2015 stopping at the .786 level of 6.6c in Feb 2016. A failure to hold prices around current levels will probably result in FAR retracing to 6.6c or a double bottom of the Feb 2016 low at a minimum.

From a trading perspective, I just received a High Market Alert for my SPA3 trading system before today's open which dictates that stops are moved up aggressively to lock in maximum profits and to take no new positions in the market until a low risk signal is generated. The SPA3 system does not pick tops and bottoms but is designed to have you in/out of the market for the big moves. The current falls in the ASX with the high volatility would have generated this signal. The system is prone to the odd whipsaw.