The latest recoil took place off a trendline which was validated by three tops on it [more the tops, better the support on a test]
The downside had an ABC structure, tho one could be in doubt as to wether its a three wave correiction or a downside with 5 waves. That doubt was dispelled by yesterdays candle. The structure of the correction seems to conform with approx 161% ext on wave C over wave A (looks like, i havent measured it)
The lowest red body, closed ON the trendline, not under it, tho it did make a lower shadow.. ie price slipped below then came back to the trendline.
Any doubts were dispelled by yesterdays candle
a. Small upper and lower shadows
b. Volumes just above the day beore - usually a sign of 'developing interest' - more buyers are to come. Something with inordinately high volumes is more likely a 'reaction' to a previous buy signal, something with just a slight rise in volumes is what im more comfortable with
Btw this is the second Buy signal on this chart, the first came on the 1st of Oct. :
Any 3-3 setup should attract attention, ie Three tops in a line, three bottoms in a line - These form strong Triangulations, Expanding wedges etc, the 3-3 setup came where its marked "3", a strong bottom closure on a previous top marked "1" was the first buy with a target on the upper trendline. [This is very simlar to whats playing out on Sintex, with minor differences]
Basically everything seemed in favour
