I would like to wish all of my readers a very successful New Year, as we look back on an Extraordinary Year, a Brave New World, and perhaps a New World Order emerging.
2021, a coming of age, Blackjack.
An end of year advance with an important Buy Signal on 03 November quickly saw new all time highs and persistent follow through and with subsequent extension Buy Signals on 24 November, 15 December and 24 December, to close the year with impressive strength, all things considered.
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The T volume oscillator* rose rapidly from the late October low up through the cash build-up line** from the 12 October lower high indicating a new T structure was emerging projecting initial price highs in early and mid November. Also with price breaking out above the previous all time high a Double Bottom DB structure could be drawn projecting further potential strength into end of year.
Since early December the T volume oscillator has been declining whilst price has held strong and continued to rise. This is potentially a bearish divergence and indicates profit-taking and re-cycling under the hood as buying power originating in earlier declines continues to drive price higher, but for how much longer?
* The T volume oscillator is an indication of Buying Power within the market as a whole
** The cash build-up line is a declining line drawn above a series of lower highs made in the oscillator.
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Zooming out to the weekly chart, we can see that price has been breaking upwards above the important trend line from the 2012-14 peaks. This shows extreme strength with a vacuum above but whether it is sustainable is difficult to evaluate.
The large T structure centered at the March 2020 low continues to project strength into Mid February from the May 2019 high, and could project further strength from the earlier declines in 2018.
In previous breakouts up through important price levels, we have seen the market eventually re-test with urgency and so we should remember the break out level (3510-90) if or when the market revisits again.
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The monthly chart returned to strength after the October low with price clearly moving above all previous rising trend lines. A blow off top, maybe. but impressive strength all the same.
The new large structure centered at the March low seems to be superseding the previous structures which projected highs in September as it now projects highs for January 2021, August 2021 and March 2022.
The Mega T structure projects a final high in March 2021.
We shall see how this unfolds.
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2020 brought some extraordinary action in the market with a range that has become increasingly expansive since the move above 2500. With price above 3700 we can only assume that this will continue into 2021. This is a Brave New World.
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Regardless of whether the market can continue higher or whether significant lows are ahead of us, the simplicity of the proprietary price based S/T Signalling System will continue to keep us on the correct side of the market, with price currently on a Buy Signal since moving above 3702 on 24 December 2020.
If you would like to learn more about using the S/T Signalling System please get in touch.
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