Tuesday, November 9, 2010

The case for Wave 2 completion

The XAO has declined after slightly exceeding the 76.8% retracement level and after completing an ending diagonal wave.

Discussed in the last post there was a distinct possibility that there would be a throw over of the 1-3 trend line in the ending diagonal on higher volume before declining.This has occurred, and signals an end of the current trend (at least in the short term).

The decline now needs to commence in 5 waves down thru the channel support lines (not shown) in order for a convincing start to wave '3'.


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