I commence with my gratitude to The Creator
Markets have rallied another leg up in after lunch hour, and coming right up to the gap open level of 08/18. It is also the 50% retracement level from the high of 08/17. Market sometimes, tend to fade or fill the gap (full or partial), however, it is very likely to pull back now. It is just law of nature.
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| Market Forecast/analysis 8-23-11 |
Nevertheless, we ought to cognizant of two possible case scenarios.
1. Has the market bottom on 08/22 time cycle?... and this price level was retested on 6 different trading days. If that is the case, then markets need to over the resistance of 08/16-08/17 price levels
2. The market is experiencing the bear market rally and then shall drop like the rock again after fooling lots of retails buyers.
I feel that it is the second case scenario. Even if market tend to consolidate in the area of 08/17 highs, it shall end up forming a right shoulder, which would be spanning from April 2010 highs, with neckline in somewhat diagonal ascending from lows of Summer 2010