Hi All
The week that was......
DOW WEEKLY chart is coming to an interesting juncture, two weeks ago a FULL ABC correction was formed which culminated in a nice push off from minor resistance at 30620, then had a good follow up week, with an engulfing green candle ( with good volume ), which is a bullish signal that the bottom might be in ( sub wave 1 up ).
However, this week ( yellow arrow ), we are potentially witnessing the sign of another down turn ( double top ), so two questions remain, was the last two weeks a BULL TRAP scenario , with an extended ABC correction on the cards, or are we looking at sub wave 2 down , with sub wave 3 to follow, indicating the bottom is in ?
Sub wave 2 down, normally attract 50/61 fib before reversing, but can go much lower as per EW rules, so the answer to those questions is still up in the air, what is almost certain, is that next week will be another tree shake, with another 1000pt drop on the cards as a minimum.
Remember, wave 4 down ( white ) normally attracts a minimum of 38 fib retraction, which would be 29386, which is potentially still a 10% drop from current levels..........
Global X has had 3 green weeks in a row ( blue bubble ), you will notice that sub wave 4 down has hit the 38 fib ( 66.239 ) with a full ABC correction and now rising, is this a BULL TRAP too ?
Lets have a look at the DAILY chart.
Alot of green flags indicate to me that the SWING UP is definitely on here , according to my count, sub wave 5 up is on and is not complete, nice higher highs / lows, all the EMA moving averages is UP ( 5/30) , the 20sma is rising , the upper bollie band is rising plus the RSI 14 is above 50..........BULLISH.
Remember, a confirmed swing is when 75 resistance is broken , so a break of the 61fib to the upside would be telling !!
All in all, by the time AVZ resumes trading on the 1/7/22 ( crossed fingers ), we could have the DOW and GLOBAL X back on a BULL run, which would be very timely, all this coinciding with the " SELL IN MAY AND GO AWAY " scenario.....
Has AVZ dodged a bullet by remaining in a suspended TH ?
You betcha, but only if it has good news on its resumption !!
IMO