At my last post,I did state that the medium as well as short term Dow Theory Trends of XAO were down. How far/deep this correction may be is a million dollar question. Extend of any move, up or down, may be measured using various TA forecasting techniques. Some do a fine job some don’t. Like the weather-man forecasting Melbourne weather and getting it right.
First is the 61.8 % Fib. retracement level as a potential bearish objective that I have my eye set on. That level is approx. 5110 making it first out of the rank. Next PRICE SUPPORT which stand out is at 5132 which makes this zone a potential bearish target. %50 Fib. my may also be another possibility and the value of that is 5221.
XABC Elliot Wave Correction is another possibility with a potential bearish price objective of approx. 5181. When an engineer takes charge of Dow Theory or inspired by Dow Theory he comes out with a fancier version called Elliot Wave. I am not personally keen on Elliot Wave with it’s Black and White objectives.
Both tentative objectives are shown on the chart. Chart reflects yesterday’s (03/11) close whereas close of today was @ 5263.
No completed pattern on the PnF chart for any clues yet.
Charts is courtesy of StockCharts.com
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