Elliott Wave Leaderboard

Tuesday, February 21, 2012

Resistance Looms the Market

Dow Heading South?

 As one can see, the trend really is your friend. However, once the trend is broken, look for a reversal, especially at key Elliott Wave projected price levels (not on chart). 

You can find out more about the Elliott Wave Principle here. 

I really enjoy plotting trend lines because it gives almost a precise price target for short and long term time frames. As we can see from the chart, there are channels within channels with another channel which I did not plot for aesthetic purposes, but my point is that markets really still DO follow and abide by simple trend line guidelines. 

Now, these trend lines put into combination with the Elliott Wave Principle and say some additional volume analysis sounds like a serious edge over any other trader looking at the same screen.  

The Dow has been making advances, but no technical advances as of late. We are clearly under the resistance line, and will most likely not cross it.  

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