Technical Analysis of Financial Markets

Friday, August 29, 2008

Predicting the Market

Inherently, it is challenging to forecast the direction of the market purely based on Technical Analysis. Even more complex is predicting market timing. Rarely do both attributes of direction and timing develop as anticipated. However, on this occasion, using classical analysis of trendlines, Fibonacci projections and basic Elliot Wave analysis, occasionally the probable scenario transpires; an infrequent example below:
Original post 19th April 2008: http://stevepuri.blogspot.com/2008/04/bull-or-bear.html
According to the projected path, price action of the Dow may be completing the fourth wave of a 5-wave Elliot decline beginning 19th May. The fourth wave of rising equity prices may complete by the second week of September. At which point, the final fifth wave of declining prices may ensue towards the year end in time for a possible trend-reversal driven by an Election Rally and the seasonal Santa Claus rally into 2009.

3 comments:

Mika said...

Good evening on there,

Your Fib & EW & Technical charts are one of the best & most interesting I had seen in any blogger site. Well, there´s not so many focused for this particular area.

I accidently looked your blogsite today very first time.

Very interesting work indeed - you´re my soulmate man.

Regards,

Market Geometry Blogger
http://just-charts.blogspot.com/

Anonymous said...

Thank you for your comments. Learning as I go along; actually following your lead !

Mika said...

We seems to have something another common, I used to work for accenture also, just in different country.

You have done plenty of very good charts making a real point, DIVX just to mention one of them.