Its been 12 days and 600 posts since my last scary chart
Luckily PEB managed to manufacture a support at the psychological $1 point (99c) to stop the freefall.
There has been some sort of relief rally to 120 but failed at that resistance point when buyer numbers dwindled...This is disturbing as failure to rally past a significant resistance level are the signatures of bear market corrections (sucker rally..dead cat bounces, etc) Also a signature of a dead cat bounce is the rule of thumb.. expect a bounce of 30% of the fall....157 -99 = 58 x 30% = 19c bounce...well PEB gave a 21c bounce...near enough to be worried?..yes.
If we rely on hope... then the untested $1 (99c) support has to be strong enough to resist this suspected continuation pattern...it is looking more likely than not that the $1 support is going to be tested....There is still a vacuum below $1 down to 70c so the $1 support is the technical cliff edge....scary...
On trying to look on the positive side....... There's a smidgen of a hint of support at 110c,If buyers come back, e.g buoyed on by an increasing Nasdq, then the 120c resistance becomes a focal point and that ultra weak 110 support becomes slightly stronger...If the price goes above this point then I suspect medium term buy signals will trigger and the huge technical risk will dissipate somewhat...This reduction of the risk premium will adjust the price upwards.
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