Opened at the high and has been lower ever since. Setting up for a shooting star top if price gaps lower tomorrow or price closes in the red today. 127.2 fib of 20.03 / 26.10. = 27.75 = another layer of resistance just above. 8/1//2013 resistance = 27.68, 8/20/2013 = 27.65 present resistance.
I appreciate the tenacity you fellows put into the EW analysis, but I cannot get out of my head that the action over the past trading day, particularly with gold and silver following, smells more like manipulation than response to weighted input from free market traders and investors. Any thoughts?
SandybeachDave, of course the market is manipulated, that's what makes it a market, not just the stock, people hold product off the market, dump product on the market and subsidize product and sell it below normal market value .. I'm sure a book could be written on the details, BUT human nature decides when they do these things and there is a progression of feeling that form the 5 waves and 3 waves, when they are there, sometimes the market just wanders along without much direction and the 5 waves and the a b c's don't form any real pattern. The EW experts know this and they only trade the stocks that have EW patterns they understand, or at least they think they do. No TA works every time,, but it works most of the time and is worth learning and there seems to be more to learn as one goes along. Wave one -people realize the trend has changed, Wave two, people have doubts and /or price has hit resistance, Wave three most people realize the trend is in place and panic to either buy or sell so as not to miss the ride. Wave four the smart money and large volume traders start getting out, and wave five is the late comers and suckers buying or sellig not realizing the wave either is or almost over. I'm sure someone else can describe these emotions better than I in fewer words, but the point is emotions are at work and can be observed and even measured in the market place. But one can't be very sure where a wave will stop, here the fibs play a part, not to tell where the price pivot will be, but to tell where they are likely to be. Once one knows where the pivots are likely to be then support and resistance levels help decide which level is most likely, on and on it goes, trendlines, Gann Squares and angles, Square of Nine levels and such help. Yes, breaking News can and does change these emotions and end wave and change trends, but often fib time predicts the time of the news release, A lot to keep track of and none of us can do it all.