Interesting charts you posted ,David.
I always like the idea of seeing any kind of patterns if they help me find target prices on a chart.
Mandelbrodt fractal analysis is fascinating. and it ties into elliott wave theory. I use elliott wave alot as a primary tool...and the current GALT chart from the 4.28 bottom to a resistance top(so far) at 5.34 area is a little hard to count clearly. on some time frames it looks like 5 waves(subwaves) have been completed, but the current sideways movement has that 'wave 4' look to it. There are some subwaves that look like truncated subwave 5's....the pullback to 4.40 looks like a wave 2, but the next rally pop back to retest the 5.35 doesnt look like a strong wave 3, so maybe its a subwave set, that might be the start of a larger wave 3, that has so far played outlike..... subwave 1of 5 of 3 of 5..... we are now losing 80 % of the forum posters attention at this moment....so I hesitate to turn this into a technical analysis study room. If I could PM, we could discuss all this privately better. sorry that I cant PM. But in any case.... what I might say here that could be useful to some is that I'm looking at all the technical details of the price action, and combining them all together, and definitely on many time frames.... what seems to be dominating the price action is the support /resistance price levels..... the 4.90 pivot point is acting like a magnet these days, as support, so far..... and the 5 dollar zone is the central stair step like a grand central station at this time.
On a basic elliott wave pattern so far, I might think we have seen the wave 1 hit 5.35 resistance....now looking for wave 2 pullback to the current 4.70-5.00 zone.....and a larger wave 3 rally ,if it is to come soon, shows me a target zone in the higher stair steps around 6.00-6.40-6.70 as a completion zone for the wave 3,or wave 5, or wave C..... it just needs to be watched intraday closely for where the rally will end.
The purpose of course is finding good bargain bottoms to buy. I think that time was last week at 4.25/4.40 and 4.60-4.75 area....and now, maybe the bargain zone will be anywhere under 5.00. But the top zone target areas for me anyway, to take a little off the top will be around 6.70, based on the technical math the chart shows me so far.
Hard to see clearly the elliott waves right now, maybe wave 4 sideways, maybe now is a wave 2 ongoing to retest 4.70 area/4.40/4.60 area, and then wave 3 begins, or will it prove to be an ABC correction wave that gets Hammered at 6.50 ? cant tell right now. So I'm favoring the other methods of watching price action show strength and weakness at support/resistance stair steps...and later on we might see the elliott waves more clearly as they take better shape.
GALT is always capable of surging or plunging 1 dollar at a time.... we could see a rally to 5.60 followed by a plunge down to target 4.60 as a falling knife to buy.
Its all tricky.
Maybe when the public realizes how frivolous the 'lawsuits' are, GALT will go soaring to 7.50 out of the blue.
who knows.
I always like to see how charts look like ,using any good tools that work, but also like what Xena said, when the market is this manipulated and rigged by the algorithms, and the FED owning at least half the market, etc etc.... its like being in vegas.
BUT I would not say that TA doesnt work anymore. I find that it still works, but probably by default, i.e. traders still use it , so the wall street supercomputer programs are set to perform within that Matrix, use that matrix, to their own advantage of course, but as long as they make the market continue to appear the same, investors and traders will continue to play along ,like its real.
so the TA still functions like its a real market.
What I try to do is add the element of manipulation to the picture, especially regarding miners, which are much more manipulated than biotech. but similar. similar rotten rigged game.
In miners, the smart approach at this point is to presume that any rally is done solely to sucker in more sheeple to get fleeced at whatever top zone the wizard decides is time to slam them down again. Ive been expecting the next miner Slam down for the last month at the current topping zones. and another bottom reached at year end, just like last year did.
For the biotechs....after Yellen made her bearish statement about Biotech sector being way overbought....I expect a continued pullback, but it looks like they have brought the biotechs ( see IBB,XBI) back into the top zone again...I still expect another big downwave to complete the pullback. The wall street sure do like to sucker in the sheeple and fleece'em good.
and when the next Giant Stock Market Crash comes.... what will our beloved biotechs do?
I want to be prepared to take profit in these rallies. any good rallies in the coming year. Buying and holding GALT now, because you expect it to be a 50 dollar stock in 2 years.....we could be in world war 3 in 2 years, we could be in an extreme great depression from the next stock market crash in one year..... or we might not be. There is no technical analysis that can forecast the next Massive market crash is there? not when the button gets pushed by the grande wizard from behind the curtain....only the insiders will have the heads up. Lots of big smart money cashed out of the market last year.
Meanwhile the MSM is telling us these days that Soros is buying miners....wow. what a game.
AI
