Hi Shaw. Funny you should mention the trend lines. It just happened that on the printed version of that chart that I had on my desk, I'd drawn in those trend lines.
I've added them to the five year chart from last night.
www3.sympatico.ca
You can see that we've indeed broken down through the lower trendline.
So, next stop the abyss, right?
Well not necessarily, as I see it, anyway.
If this five year channel is valid
then one could argue that when we went above the upper trend line,
a correction back to the channel was inevitable.
Perhaps the same argument could now be applied.
If so, we could see a return to a nest within those trend lines,
with presumably a return to the upper limit which is rising, of course.
So, we may have farther to fall, maybe a lot farther.
But if this premise is correct then a rebound to the 4,000 area could be ahead, as well.
Optimistic, as always,
Cush |
