Point and Figure Update
The range tightens. The formation reverses. The question is whether or not the gas is running out.
The price reversed last night from a high yesterday at $2605 we’ve dropped down as low as $2,500 this morning. Unless we move back upwards and pass $2,620 before 8 PM EDT, the wide formation will be broken. What this takes off the table is the explosive break out or break down.
This chart is showing a rally that appears to be running out of gas.
I took the liberty of adding a couple of “+” lines on the chart. These come down from the previous high and up from the similar time frame’s low. What you see looks like a big arrowhead or triangle. Every time we shift columns the range tightens.
If you were to move those lines out until they meet the point would be in the $2,500 area. This seems to be an important range for this formation. I am not going to write, “the next two days are crucial.” I AM going to write that I think we are in an important range.
So, here are the numbers:
A reversal to a column of Xs happens at or above $2,560.
A break out happens $100 away at $2,600.
A break down happens Under $2,240.
The formation is a narrow 3 columns wide.
Look for a resolution of this issue today through the first part of next week. Otherwise, try trading the range between the top of the triangle and the bottom.
[The Daily Chart](http://imgur.com/a/ueUWN)