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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