Bullish Outlook Reissued
This is an interim bulletin to convey my advisory switch back to BULLISH. I’ve been expecting the first in a series of two lows in the present time frame – essentially forming an A-B-C pattern off the February 25, 2015 high.
My assessment of both the daily and hourly patterns suggest that the first low I am anticipating right in here either occurred just before today’s close or we could expect it shortly after tomorrow’s open.
I added to long positions in my managed accounts during the final minutes of trading today for what I envision as a move upward to form a right shoulder high in about two-three weeks’ time. This countertrend move higher – not to new highs – but higher nonetheless – should last about 13 trading days (+/-). I’ll attempt to better pinpoint the date once I get confirmation of this pending low and the structure that evolves. Assuming we get the next high in approximately two-three weeks, my plan is to initiate a BEARISH advisory at that time for a slice-and-dice move down into about April 3 to form my second expected low. From an April 3 low, I look for a move back to new highs into early May.
On my 54 hour percentage range chart below, note the placement of red arrows signifying turning points over the last six months. The pattern would suggest the next turning point (low) is due right about now.
Each month, Stan Harley publishes TheHarley Market Letter, a newsletter that provides advanced technical analysis of stocks, bonds, and precious metals. This is the latest update to the Harley Market Letter for March. Want to learn more from acclaimed market analyst Stan Harley? Visit his site and subscribe to the full Harley Market Letter.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer