Thursday, August 25, 2011

1390: A Strange Attractor

S&P 500
The mid point of a panic--when prices gap and form a doji is quite often the midpoint of an impulse wave--in this case a downward thrust. Using this methodology a target of approximately 1030 is arrived at which is coincident with the July-August lows of 2010. Note how the midpoint in the 1190 area and its geometric harmonics have been a 'strange attractor' in the past.


GOLD
The June low was made at a 240-120 intersection. Gold is approaching a 120-240 intersection near 1650-1660 area which was a minor resistance point on the parabolic ascent from the June low. If the Bull is to remain relatively healthy the 1650-1660 should provide strong support and contain the decline--breaking 1650 opens up a 'post-parabolic can of worms'.

USDX

Patience---patience. The US$ is like a spring being coiled. The resolution of which will produce a violent thrust. A break out from the 73.50 - 75.50 will be confirmation that the thrust has commenced. Gold should provide a clue as to the direction the resolution of the consolidation takes.



4 comments:

astrofibo said...

Good interesting charts...

STEFANO said...

Nice Gold chart, what do you think of Silver? what kind of targets would you expect?

Chartrambler said...

nice charts....

Fibocycle said...

Thank You--much appreciated. Sorry for the sporadic updates..I have been travelling.
I have just posted a silver chart.