I told myself to drop by once a while in this forum to keep up with the interesting posts and to contribute whenever possible, and so here I am again after an absence of a few weeks, with a simple chart and some viewpoints again.
But first the necessary preliminaries:
There is Zero fundamental content in this post. If you are a fundamental investor or long term position holder and are not interested in charting and technical analysis, please do refrain from further reading or to skip this post so that you do not waste your time on my posting as it involves charting and technical analysis only. Thank you.
Here is the chart I'd like to share today:
Observations: ============== 1. Prices are hitting the upper bound of an expanding triangle- and that upper bound has kept prices in check for about 8 consecutive trading days so far.
2. By identifying a Balance Point Line using the principles of Balance Dynamics where prices are in equilibrium at the halfway mark, so that the length of BL-BPL=BPL-TL as shown on the chart, it is found that the top line forming resistance is now very close indeed to the current price of XJO, suggesting we are at the throes of impending resistance or even a temporary top.
3. This Balance Point line is valid as it provides resistance and supports to most of the price bars, and acted as pivots at the halfway mark of the price movement.
4. By plotting a group of Hurst cycles as sine waves as shown, I have drawn vertical lines from the nest of MAJOR cycle lows as shown on the chart and extend to the price bars. It is seen that the nest of cycle lows picked either the Top or Bottom of prices as indicated on the XJO chart, or nearly so. I have refrained from drawing the vertical lines to pick the other minor tops and bottoms so that they do not cloud the chart with too many confusing lines. But if drawn, they also managed to pick the minor tops and bottoms as well.
DISCUSSION: =========== On the basis of the synergy of several indicators - the price reaction at the top of the expanding triangle, the presence of the Top Line of resistance projected from a Balance Point line, and the price bar location corresponding to a nest of major cycle lows from a group of Hurst sine waves, we are at the troes or time window of a change in trend or near peak in the XJO. Generally, prices may hover around for a while before correcting.
Please read the disclaimer below my signature line.Cheers.
Just some views I'd like to share with you and until the next time we meet again in this XJO forum, may the best prices be yours.
(20min delay)