Point and Figure Update
We reversed into a column of Xs. This is narrowing the trading range again as we move towards a convergence of the support and resistance lines. At this stage the point to keep an eye on is $2,600. If the price fails to break through the first line of resistance a drop down into mid $2,450-40 range is possible.
As you can see on the chart the first and second lines of resistance (moving upwards from the bottom left to the upper right) are pretty close together. This is forming a pretty solid support line.
Resistance is further apart (the “+” signs coming down from the top left to the bottom right) show weaker resistance after we break upwards.
The other thing to note is that the formation is once again 8 columns wide. This can be seen by the shaded horizontal row (with the number eight listed on the left end.) The largest formation this year has been 12 columns, with only a few others larger than eight. This shows a strong consolidation. Think of it as the string being wound down. When it is let go, it should spring up (or down) with some conviction. Since the support is tight, I am guess that we will probably show a spring upwards. This is supported by the fact that we remain in a solid upwards trend from the low $1,600s.
So, here are the numbers:
Current price is about $2,550.
We reverse with any price under $2,520 TOMORROW since we have already climbed into a new box today.
A positive breakout would occur with any price over $2,640.
A negative breakdown happens with a price under $2,460. (Try typing those two sentences without looking very carefully at the numbers.
I am optimistic about the situation. I am not 100% sure what the next three weeks will hold for us. No matter what, the trend is positive and the pressure is building. There seems to be a trading range of about $200. Keep that in mind as you think about trading.
The Alt Crapfest continues. I think we should invent RedditCoin and all become millionaires by next week.