Price hit a high today at 76.76 c before reversing back down to form a bearish outside reversal candle. This should be the wave B high which will need to be confirmed with some downside follow through.

The Bollinger Bands show the high bang on resistance from the upper band.

The Fibonacci fan shows this high was around resistance from the 88.6% angle.

I have added Fibonacci retracement levels of the move down from the high into the wave A low and this wave B high was right at the 76.4% retracement level.

The RSI shows a triple bearish divergence which often leads to a significant decline.

The MACD indicator looks to be threatening a bearish crossover which should occur if price does indeed now follow through to the downside.

I expect the wave C low to be a marginal false break of the wave A low at 71.44.

By Austin Galt

www.thevoodooanalyst.com

Austin Galt is The Voodoo Analyst. I have studied charts for over 20 years and am currently a private trader. Several years ago I worked as a licensed advisor with a well known Australian stock broker. While there was an abundance of fundamental analysts, there seemed to be a dearth of technical analysts. My aim here is to provide my view of technical analysis that is both intriguing and misunderstood by many. I like to refer to it as the black magic of stock market analysis.

Email - info@thevoodooanalyst.com

My website is www.thevoodooanalyst.com

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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