“Those who have knowledge don’t predict. Those who predict don’t have knowledge.” Lao Tzu, Chinese philosopher, 6th century BC

PAYPAL

Wednesday, 9 December 2015

9 Dec 2015 - Broken Triangle

The near term triangle has been weakened but still remains above the mid-November lows.  Although this still looks like a triangle or wedge, the price pattern however is producing a much complex count.  Right or wrong, one thing is clear...  ST is still favouring the downside action.  With the intra-day trend being bearish with only a neg. divergence present, the case for price to break down out of the triangle is strong.  It could be that prices are targeting the 2020 - 2010 area, and this would alter the count to finish of a corrective move that started in early Nov.

SEN: Bearish
ST: DOWN
PA: DOWN

Note: The PA is flashing a downside risk for acceleration and if this holds true tomorrow, it would most likely negate the negative divergence present or active in the 60 min. chart.  So be aware of this in case it unfolds.


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