tas74t

Tas asked for a chart of this equity last night on the charts thread, but because the request is about RFE rather than charting, I have posted it here.

Basically the long term fork is drawn in black. The handle to that fork is anchored back at the 2007 high and I have left it out of frame because it does not add much.

Since RFE topped in Aug, it had a bit of a decline, tried to retest the black upper line but could not get there (bad sign), so it needed to retrace to find out where support was. That retrace was initially described by the pink short term (ST) fork.

Eventually the pink fork had it's resistance tyne broken in a little rally in mid Sept. When that happens we draw a new fork, and I used blue. Price bumped along the support tyne of blue, and had a couple of goes at reaching the blue median line (ML) which is the centre line of the 3. It failed both times (bad sign), then broke the support tyne, so we had to draw a new fork.

The current decline is framed by the red ST fork and as you have probably noticed it is approaching the ML on the black LT fork. That would be an area where you would expect a bit of turbulence from potential support.

I have also circled a gap over on the left, and you would expect price to want to cover that gap. The bottom of that gap is 85c.

If you were an elliot wave person, you might look at that decline as a classic ABC or measured move. As a measured move you would probably say the first decline was 1.45 down to 97c which is about 48c, so the second move might be 1.32 - 48 gives you a target of 84c.

anyway thats the chart so good luck with it