This is an update to the weekly bars chart of my July 4th post.

As I noted last week, price supported at Old R4.  This past week, price remained above Old R4, but the entire week was, as some chartists say, an “inside bar”, meaning the range of the price bar of this most recent week was entirely within the range of the immediately preceding week, indicating essentially no motion up or down.  So, the downtrend that was in effect still is.

Notice that this week the two curves S3 and New R2 are merging together, currently at the price level 1099.  This emphasizes their importance.  So, a break above them would indicated that this downtrend will have become a consolidation; whereas a turn down from that level would reinforce the strength of this downtrend.

Tweet This Post