As we have shown over the last several days, the ES futures currently appear to be wedging in an up trend. It is difficult to say that a wedge is over until key lengths are exceeded lower.
Yesterday's break of the initial wedge line still looks like a three-wave affair. So, the lower wedge line has been redrawn. Two key lengths to watch are the lengths of the 02 Jan down leg, and the 18 Dec down leg. Only if these are exceeded might it possibly have downward implications.
GOLD (futures GC) have been wedging on the two-hour chart, and the wedge was recently broken lower. Key lengths need to be monitored here, too. A GC 2-hr chart is below.
Have an excellent start to the day.
TraderJoe
potential exp diagonal forming in AMZN since the November low
ReplyDeleteI don't see where you get that conclusion from. Although the current up wave is longer into 12 Jan, the current down wave is too short. It must be 'longer' than the prior down wave into 17 Dec to begin to suspect the pattern. It's nowhere near there yet.
Deletehttps://www.tradingview.com/x/3eE4Qhen/
TJ
so it's not "fair" to say potential diagonal forming? seems to me that a lot of EW analysts project potential waves into the future based on recent waves
DeleteThe Principle of Equivalence says, especially near a top, one needs to 'weigh the odds'. You said, 'potential expanding diagonal'. That is among the most rare patterns. How can you distinguish that from this triangle, which is already a 'legal' pattern as wave ⓔ has already overlapped wave 3 as it must - by the rules - in a running triangle?
Deletehttps://www.tradingview.com/x/A3hOp9o3/
One pattern is already legal. One is not yet.
TJ
got it, thanks
Deletewelcome. TJ.
DeleteHello TJ,
ReplyDeleteI wanted to understand the following from you:
The monthly RSI of gold is currently around 94 and has been above 90 for the last few months.
The last time gold’s monthly RSI was this high (around 94) was in 1973.
What are the implications of this? Also, which levels, if broken, could lead to a significant correction?