Triangle Pattern gives short term direction

Dec 21, 2016

Triangle pattern forming, but given the divergence in Primary and Cycle waves, it is hard to determine direction after Christmas. If the triangle completes, then it can either break to the upside signaling strength in the short term with a continuation of the larger cycle's third wave. This wave was originally believed to have completed on the 15th in the afternoon of US trading. Breaking to the downside would signal long term strength. This is the likely scenario, we believe. It would coincide with low cyclical volume due to US holidays and profit taking for the year end.

If however the triangle fails to complete, it will most likely be a breakout to the downside on low volume. It would be a buying opportunity for speculators and bring some volatility into the new year. Long term players will likely buy into this scenario.

Dec 29, 2016

Trade active

Looks like confirmation of III is in play since the triangle broke to the downside. Still long and buying the dips.

Jan 12, 2017

Note

The failure of the upward move on the 5th indicates that either wave IV has not yet finished or this entire pattern has broken. Reevaluating.