The 20 week component has been amongst the most dominant in the last 12 months. As stock markets approach the next peak of this wave, we will see dominance continue?
David, I see 1) the 20w component recently losing amplitude in the last iteration, 2) the 22nd of January peaking cluster having very small amplitude and 3) the expected 20w low that was supposed to happen around these days to be apparently compressed under the pressure of a bigger component pushing from behind. Moreover, 4) we created a higher high after pushing out of the 80day through. I see strong bullish pressure now, till the 40w component peak... Is this interpretation reasonable and consistent with facts and the theory? Thank you. Alessandro
Hey Alessandro. A fair interpretation for sure. As we mention above, the 40 week component is key really. A lower low for it's trough, due middle of the year, will be telling. The 20 week has either been totally attenuated (and has formed a subtle trough) or is price is due a very sharp decline very shortly into it. Global indices are varying a great deal, European indices markedly stronger, most notably the FTSE. What we do know for sure is that an 18 month nominal low formed. This component seems to be providing the bullish pressure along with the 40 week component.
Yes, David really brings high quality content. What I really value is his way of putting together information into a single analysis with a more likely scenario and an outlier that can be tracked along the way.
David, I see 1) the 20w component recently losing amplitude in the last iteration, 2) the 22nd of January peaking cluster having very small amplitude and 3) the expected 20w low that was supposed to happen around these days to be apparently compressed under the pressure of a bigger component pushing from behind. Moreover, 4) we created a higher high after pushing out of the 80day through. I see strong bullish pressure now, till the 40w component peak... Is this interpretation reasonable and consistent with facts and the theory? Thank you. Alessandro
Hey Alessandro. A fair interpretation for sure. As we mention above, the 40 week component is key really. A lower low for it's trough, due middle of the year, will be telling. The 20 week has either been totally attenuated (and has formed a subtle trough) or is price is due a very sharp decline very shortly into it. Global indices are varying a great deal, European indices markedly stronger, most notably the FTSE. What we do know for sure is that an 18 month nominal low formed. This component seems to be providing the bullish pressure along with the 40 week component.
Yes, David really brings high quality content. What I really value is his way of putting together information into a single analysis with a more likely scenario and an outlier that can be tracked along the way.
Great stuff David. It's all coming together nicely thanks to your clear & concise explanations