Tuesday chart

OK it looks like box 4 is now broken. I had to increase the size of it last week to accommodate the support at $0.165 but that didn’t make much difference in the scheme of things just increased the range.

The ranges of the boxes I have been charting have been increasing as the down trend continued but whether this pattern will continue won’t be known until after the new box 6 completes one way or another.
Given that all of the boxes so far have met my target expectations regarding the distance to support or resistance measured at the time of breakout, I can only assume that this one will be no different.
I usually like to see two or three days in a new box before I am confident that the old one is finished and the new one is the new norm so if the sp goes back into box 4 today or tomorrow then I will assume that box 4 is still the one & box 6 has failed.

Therefore my expectation to the downside for box 6 will be about the same size of the box 4 range of $0.065 with intermediate support at around $0.015. The center of the box at $0.013 I think should be support & a fulcrum for trading whilst in the new box 6 range if the target range is reached.

At the time of making this chart today the selling looks a bit thin & $0.15 looks like strong support if they are true orders. We may even get a turn around of sorts today.

If this pattern continues then I would expect a low for this new range box to be down around $0.10 – $0.105.
This will correspond to the gap that formed on the 15/8/14. This gap has been mentioned before.

If this box fails and the sp takes off again then the previous box pattern and associated support, resistance and target areas would come into play again.
I am not trading PSY as I said before & am content to just hold but am always interested to see if my charting ideas work out.
If I was trading it I would be quite confident that my target ranges would be safe enough to buy or sell.
If the sp does look like going to my low support prediction I will be neither surprised nor disappointed and would view it as a success.

I don’t expect to get it right every time and am happy to discuss the reasons or I deas with others when it does or does not work out.