Wednesday, December 16, 2009

Natty Where Ya Goin?

From Yesterday Morning,
"The wedge that is starting to shape up normally is a sale. However this is less true short term, since it has not been at all tested, and can end up as a running correction . The 5.57 target as .236 retrace of 15.78 to 2.40, is just overhead. That is an initial target I've been mentioning since the 2.40 low. The kind of explosive 3 of 3 to the upside that could take it out quickly has yet to show up."

click to enlarge
Natty has touched the .236 resistance and found selling. A little early to call the C wave up from 4.44 done. However the last leg up from 4.84 to 5.57 (.73)  is roughly EQUAL to the preceding leg from 4.44 to 5.23 (.79);  tempting to label it C=A. Additionally, not only is 5.57 the .236 retrace of the whole move down, the structure up from 4.44  is a .382 of the 2.95  move from 2.40 to 5.35. So an important resistance point.
An overlap of the 5.20 point in above chart, will confirm this particular structure up is complete.
If that turns out to be the case a .618 retrace of 2.40 to 5.57 puts it at 3.62.

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