THE EYE WINS FOR NOW.
REMEMBER WHEN MODELING LINES OF FORCE, THE EYE WILL ALWAYS TRY TO PUSH PRICE BELOW THE CURRENT TREND.
WHILE PRICE DID TRAVEL BELOW TREND ON 2/6, IT DID NOT CLOSE BELOW TREND THERE. INSTEAD PRICE RECOVERED STRONGLY AND ATTACKED THE EYE FOR THE FOURTH TIME, STRONGLY MARCHING ACROSS FOR SEVERAL DAYS.
INTERNAL TO THE EYE WAS A WEAKER EYE CREATED BY THE REFLECTIONS OF CL1. CL1 WAS CREATED AS THE FALL CHANNEL CONTROL LINE RESULTING FROM THE THIRD ATTACK ON THE EYE IN LATE JANUARY. REMEMBER THAT CONTROL LINES ALWAYS TRY TO LEAD PRICE TO A LOWER SUPPORT.
PRICE DEFLECTED FROM THE MINOR EYE CL1-R AND CONTINUED ATTACKING FOR SEVERAL DAYS UNTIL MEETING THE RIGHT RAIL OF THE MAJOR EYE IDENTIFIED ON 1/26. THE EXTREME DOWNWARD FORCE OF THE COMBINED EYES CAUSED A PRICE RETREAT OVER THE NEXT SEVERAL DAYS LEADING TO THE CLOSE BELOW THE TREND.
THE SUDDEN RETREAT CREATED A NEW EMBEDDED FALL CHANNEL WITH ITS CONTROL LINE CL2. INDICATES AN EXIT FROM THE EMBEDDED FALL CHANNEL FEB 24-25 IN THE MID 3.20s.
AN ALTERNATE FALL CHANNEL MAY BE DRAWN (SHOWN IN DOTTED RED) INIDATING AN EXIT 2/28 AT A LEVEL NEAR 3.60--BOTH MAY BE CORRECT. NOTE THAT THE CONTROL LINE (UNLABELLED) FOR THIS LAST FALL CHANNEL IS A REFLECTION OF CL1.
THERE IS AN IMPORTANT LONGTERM FORCE LT1 JUST ABOVE THE CURRENT TRADING PRICE, WHICH PRICE MUST OVERCOME. I EXPECT TO SEE US CROSS THAT LINE AND HOLD ABOVE IT AS WE FINALLY FINISH CROSSING THE EYE IN EARLY MARCH. NOTE THAT LINES OF FORCE DOES NOT PREDICT THE FUTURE.
NEVER TRADE YOUR MONEY BASED ON MY WORK OR ANY WORK OTHER THAN YOUR OWN. MY WORK LOOKS AT PRICE AND PRICE ACTION OVER TIME AND IS FOR ENTERTAINMENT PURPOSES ONLY. NO TECHNICAL INDICATORS. NO FUNDAMENTAL ANALYSIS.
IT'S YOUR MONEY. PROTECT IT.
For more information on the method called Lines Of Force please click here
To see how my last model worked out please click here.
Follow along weekly to see if this crazy method might help in your risk analysis. You might be surprised.
3:30am EST 2/24 model edited to correct embedded fall channel.
analysis unchanged.