Thursday, April 29, 2010
The Qs have traded around the median line formed by the November 08 and March 09 double bottom for over year. To me this is truly amazing and shows the overall strength of this rally. There has been only one brief test of the lower channel line, but I suspect that between now and mid-June we will see another. That will probably be the launch point for the final moonshot of this historic rally. However, since the current formation is occuring below the median line, it is less likely that we will see a move to the upper channel line. The median line should prove to be formidable resistance through the summer. Even so, the slope of the median line projects to 58 at the end of August when the top is expected, which would be another 15% gain from current levels.
The lower channel line will mark the transition from rally to correction when it occurs, and it will occur at some point.
Posted by R. Craig Pritchard at 5:24 PM