is contracting in Daily to similar levels seen prior to the violent move down from 6000 to 4000.
In this study, we’re going to use the indicator as a tool to confirm when could happen the next breakout.
The line has bottomed during December 2018 and already allows us to draw on it.
We can observe the red being broken in anticipation of the last down move from 4000 to 3600.
Getting back to , we see it coiling hard. And now the question is two-fold:
- a) When the energy contained by the is going to be released?
- b) Which direction will take the explosive move?
To answer the WHEN question, I’d like to point the test of the next (blue dots).
I see high probability of a breakout sparking as a result of breaking the . That might be the moment of truth.
With regards to DIRECTION, a solid break under the clearly points towards a Down Move.
In that breakout scenario, I foresee hitting targets sitting below the actual lows (2800 area).
And that would be the minimum target because an explosion in certainly might have enough energy to hit lower levels.
Now, if we see the line bouncing off the , it could trigger a 222 being drawn.
And that’s a move that would coil even more the . It just would delay the resolution of the above questions for some days/weeks.
Right now I’m not reading clear signals to support the case for the to break in Up Direction.
Certainly, a bounce off the blue followed by a solid breakout above the red could be a good one. It’s just that I don’t see the signals that support that scenario (at least yet).
Stay tuned for the next significant move! 😉
Published at Tue, 15 Jan 2019 14:38:33 +0000
