Danube,The red line is a small segment of the first warning line...

Danube,

The red line is a small segment of the first warning line above the pitchfork which framed the decline which began about 6 months ago. These days it is just a line which should offer mild support.

The 2 purple lines are a trading channel formed by the trigger line of another pitchfork (which was too easily and convincingly broken), and it's clone, positioned at the intersections of that old broken fork. The cloning technique is a quick way of forming a type of pitchfork known popularised by Andrew SCHIFF. Rather than explain what it was, I just represented it as a trading channel.

Normally where the line of one fork crosses another fork, it acts as a sort of a magnet for price. In this case, I guessed that the convergence of the red line and the lower purple line was a target a few sessions ago. I have not seen anything which has dissuaded me from that view, and I dont think that how price gets there is all that important or interesting, other than for day trading.

This morning when I looked at the chart I thought that price had gone down too early to be "on track" for that target, so I guessed there would be a pop today to use up some time. I included a comment that if it did not pop, I would look for support below, because that red line has been recently breached, so while it will serve as a guide, it will probably not offer very tough opposition to a determined assault (which I was assuming would not materialize.)

Having gotten this session over with, I am now guessing that the red line and the blue arrow across the descending tops forms a descending wedge, and that tomorrow there will be another pop wandering down the path of that wedge.

At some stage I assume that price will break up to the top of the channel, and therefore the beginning of the wedge, as these things are supposed to do, largely because of the impending 8 tranches of US$6B in POMOs, but for the moment it is back "on track" for that convergence.