Technical Analysis of the financial markets using Elliott Wave, Gann, Fibonacci, cycles and momentum indicators. Posted information is for educational purposes only and not a recommendation to buy or sell any stock. This site is dedicated to the study of technical analysis.
Thursday, 11 November 2010
Choosing Between Options
Why choose the A-B-C scenario from the April high instead of ending the correction at the July low? One of my reasons is the RSI (shown above the price chart). When it dropped below about 40 in 2008 it signaled a bear market was underway. Until the RSI moves back above the red zone in the chart I will prefer to view the current action as a corrective wave.
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