Real downtrend…

Posted on Jun 03, 2019 by in Uncategorized

The previously identified abgz formation  we have looked at has collapsed and is much larger than appeared.  We are now in the gamma wave and worse, are in a downtrend  that is not predictable.  Eventually we will see a zeta wave, but when is not known.  Classic management technique directs either exit from the market or robust hedging.  Below we will look at support areas.

Number 1 identifies areas which have previously been important.  No 1 is probably the weakest of these but might have a chance for arresting the trend.  Number 2 might almost be considered a part of Number 1, so there is an area of support rather than a precise number.  The penetration of any of these lines is important, but if line 3 is broken we are looking at a test of the bottom of the chart.

We are reminded of Hemingway’s remark about how bankruptcy happens:  “Slowly, gradually then all at once.”

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