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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: TimbaBear who wrote (50577)	5/4/2006 7:04:37 PM
From: patron_anejo_por_favor	Respond to of 116555

The reason I think the drawn neckline is "correct" is because it measures more or less correctly with the shoulder lows, and because it was tested from below (indicating that it did provide resistence) twice. An upsloping neckline is usually a more valid (ie, the measured target is more likely to be hit). The right shoulder is smaller than the left, which is another criteria I look for. Parallel tops of shoulders and necklines are nice, but they often don't form quite that perfectly. Re the neckline: I think it has broken (much like the dollar) and the end game is being played out.... EDIT: While we're on the topic, there's an even bigger H&S on the monthly dollar with an almost flat neckline at about 80 (from 1995 to the lows in 2004). This one is a beast, would measure to 40 or so: stockcharts.com (sorry, I'm not in a location where I can use Java to annotate, but I think most of us can see it on here). Dollar at 40 would correspond to gold at 1445, crude at 150 and massive civil unrest (no doubt).