Lots of accumulation happened last month in the $3
Post# of 154836
(Total Views: 765)
Posted On: 06/25/2020 2:40:24 PM
Re: pythagoras345 #39172
Lots of accumulation happened last month in the $3 range, buyers preparing for the explosion. And you see the explosion finally happened without specific new news, but surely enough news had accumulated. In this case a drop back below 5 can be purely technical -- CYDY advanced parabolically into 6.65 and has to cool off, and create some nervousness for all the people who excitedly bought the parabolic blowoff today, as it has for those who sold the linear extrapolations at $5 or $6. The "parabolic" shape just reflects acceleration in time, which is necessarily unsustainable -- exuberation must cool off for a few days. Usually gives back the gains made back to the base of the parabola, where things started to curve upwards in time.
For a great example of this, go to tradingview.com and plot Palladium continuous futures contract symbol PA1! Palladium's wave V doubled from 1400 last September to 2800 end of February in a series of parabolic upspikes, with 3 nested groups of 3 upspikes. Then gave it all back first week of March. These are just typical market dynamics for parabolic moves. In an earlier part of its larger parabolic wave from $500 4 years ago, Palladium wave III also doubled in six months from $800 to $1600 starting Aug 2018, but that channel was still mostly linear and it only gave back a third in two weeks. CYDY behavior this week actually looks more like the Palladium wave III mostly linear with just some parabolic blowoff on the hourly chart today, maybe gives back half or a third of this week's move. CYDY may get into double digits with something looking more like Palladium's wave V, which stretched a parabola over 6 months.
For a great example of this, go to tradingview.com and plot Palladium continuous futures contract symbol PA1! Palladium's wave V doubled from 1400 last September to 2800 end of February in a series of parabolic upspikes, with 3 nested groups of 3 upspikes. Then gave it all back first week of March. These are just typical market dynamics for parabolic moves. In an earlier part of its larger parabolic wave from $500 4 years ago, Palladium wave III also doubled in six months from $800 to $1600 starting Aug 2018, but that channel was still mostly linear and it only gave back a third in two weeks. CYDY behavior this week actually looks more like the Palladium wave III mostly linear with just some parabolic blowoff on the hourly chart today, maybe gives back half or a third of this week's move. CYDY may get into double digits with something looking more like Palladium's wave V, which stretched a parabola over 6 months.
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