We see here that on the first day of this new year, price broke strongly above the resistance range we’ve been watching.  But, as I wrote here last week, there is a TopFinder that’s fit to this uptrend that started at the end of last November, and its projected end is at the horizontal location of the dashed vertical line.  At the end of December, this TopFinder was 77% complete (in terms of cumulative volume).  Now, we see that it is 97.4% complete, close enough to declare that it is finished.

On this chart here, I’m focusing more closely on this uptrend.  I’ve identified that the first pullback during this uptrend was really on Dec. 8th, so I’ve moved the identification of S2 to begin on that date.  Subsequently, I’ve identified the rest of the Midas hierarchy of support curves – S3 and S4 – starting from the 3rd and 4th pullbacks.  It is very common for an accelerated uptrend to spawn such a 4-fold hierarchy, so this uptrend is typical, and well tracked by both this hierarchy and the TopFinder.

Going forward, we should expect at least a few days of sideways consolidation.  If price does not significantly penetrate S4, then it is likely to form a new uptrend at some time in the near future.  However, if S4 is broken, then a new downtrend will have started.

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