Listen to TQ. He has been doing a brilliant job of showing you folks the deflation side of the equation. The charts are saying the world is deflating.
Rambus
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A post to RNO on August 11, 2008

redneckokie1…re 14:53

-> Posted by Rambus @ 21:29 pm on August 11, 2008 :: Edit post

Here is the gold chart that I posted on August 7 showing an unbalanced strong right shoulder, H&S top formation. As you can see the right shoulder contained a bear flag with 4 reversals points and a H&S top to boot. The way I measure a H&S top is to measure down from the top of the head to where the neckline first touches the right shoulder, blue arrow. I like to take that measurement and measure down from the top of the right shoulder to get a possible first support area after the neckline is broken. In this case the right shoulder, bear flag measures down to the 803 area. Sometimes you can get a nice rally back up to the underside of the Neckline before the real decline begins. Then you can take the original measurement and measure down from the breakout of the neckline to get your minimum price objective.
As far as the strong right shoulder goes I still treat this pattern with much respect until it proves otherwise. You can see once the NL or support rail gives way there are not many buyers underneath, all the buying power was used up on all the touches above the NL, and a vacuum is created below the NL causing a day like today giving us conformation of the pattern.
All the best redneckokie1…Rambus
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