I’m updating here the daily bars chart from my last post, Nov 9th.  The TopFinder TF2 ended on Tuesday, Nov. 9th, so on this chart here I’m de-emphasizing it.  The end came two days after the peak on Nov. 5th, which is quite a good performance for a TopFinder.  Often, when a TopFinder is >90% complete, price tends to get rather volatile.

What comes after the end of a TopFinder is a consolidation, an often sloppy sideways motion in price during which there may be ups and downs.  The top of the consolidation’s range is the recent high price, while the bottom is the highest support curve in the hierarchy of Midas support curves that has been following the uptrend.  Those curves – S1, S2, S3 and S4 – are emphasized on this chart, each beginning at a significant pullback in price marked by the green arrow.  On this chart now, the bottom of the consolidation’s range is S4, and we see that last Friday, price came down to S4 and bounced up to the close of that day.

In my Nov. 9th post, I stressed the importance of watching for either a break up in price or a break down.  Those breaks are relative to this defined consolidation range that we’re still in.  So, going forward, we need to watch for either a break above the Nov. 5th high or a break below S4.

Tweet This Post