A few things to note here.
Firstly, Trendline 1 coloured in red was a support line for quite a few lows earlier in the year, then when it was finally broken end of August it became a resistance area for the September high. We potentially have a same situation for Trendline 2, drawn from the April low to the low at the end of September, could now provide a resistance area for the current price.
Secondly, I have used Fib on the high and low of the year together with a Gann Fan from the year low to the August high.
What is interesting first of all is the how close Trendline 2 traces to the 3/1 line, and how these trend lines co-inside with Fib .50 which is very close to where the current price is at.
If the price was to drop and stay within this steep falling blue Trendline 3 the initial target would be at .618 Fib which also co-insides with 4/1 line.
Finally, I think we could potentially see the bottom blue trendline broken at some point in December. Perhaps this will tie in with the 8/1 line being broken too.
Firstly, Trendline 1 coloured in red was a support line for quite a few lows earlier in the year, then when it was finally broken end of August it became a resistance area for the September high. We potentially have a same situation for Trendline 2, drawn from the April low to the low at the end of September, could now provide a resistance area for the current price.
Secondly, I have used Fib on the high and low of the year together with a Gann Fan from the year low to the August high.
What is interesting first of all is the how close Trendline 2 traces to the 3/1 line, and how these trend lines co-inside with Fib .50 which is very close to where the current price is at.
If the price was to drop and stay within this steep falling blue Trendline 3 the initial target would be at .618 Fib which also co-insides with 4/1 line.
Finally, I think we could potentially see the bottom blue trendline broken at some point in December. Perhaps this will tie in with the 8/1 line being broken too.