Considering the fact that every downside trend keeps losing strength relative to the upside impulse trend, the convergence in this consolidation seems to be choosing an upward drift. I would be weary for Canada and the potential for a weaker dollar...
If it follows through on the rejection of this supply level we could see some pretty significant downside. Thoughts on targets? Let me know in the comments.
The technical evidence suggests this will continue to climb and gain on this large channel. Any downward trend that forms is easily broken and the time is near that it will potentially regain the original upward trend from before. If it does that then this will have even more strength than before since the trapped bears from below the trend line will be forced out...
Not sure if you know this but this is has been one of the longest ever pump and dumps in history that has finally returned to actual fair value. Range from ~$10 to ~$32.
Looking at this weekly SPY, if you consider that the inner channel is a "fair value" rate increase in value and that the blue channel is the extreme away from fair value signifying "over-excitement", then perhaps we can conclude there may be more downside to correct and balance out this "over-excitement" with an equal and opposite reaction.
#260 ???
