Price is at the 1/8 time cycle of the intermediate term range of 2006-2008 and near the 1:2 Gann angle. Price could move down to around $93 and stay above this angle. After five waves up price needed an A-B-C correction before it could move higher. Price may be setup at this point to make a move up.
The range square of the wave 5 move shows price dropped quickly through the 50/50 point to the 1:2 ascending Gann angle. Price has had two inside days and could just as easily drop down to the 1:4 line which is near the $93 level of the chart above. From that point a long position could be taken with a stop below the 1:4 angle.
Tags: A-B-C Correction · Elliott Wave Analysis · RIMM · Square of Range2 Comments
2 responses so far ↓
i guess this is a continuation from the posts from before…the strong stocks can rebound and move up before the market, or will start moving up before the market… do you know if markets are more volatile in the middle or towards the end of bear markets? If your estimates are correct, we are nearing the end of this bear market (and you called it on the fool last year! i remember wondering about it) in october…
I don’t know how much worse can it get? Several things are going better now (gold down, oil down, dollar up) so that inflation is more under control, the big banks that could fail have (fred fan leh, bear…)… I like todays action, haven’t looked at the volume yet though…
The best stocks “always” move before a change in trend to the upside. Looking back at previous big/little bear to bull changes show the best stocks move 2-6 weeks before the index changes direction. (The best stocks being those that eventually move the most during the bull phase.) The big boyz do stealth buying for what the really want to own before they move the indices higher.
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Volatility - markets almost always are more volatile at tops and bottoms.