As regular visitors to this website know, Chris Kimble keeps his eye on Fibonacci retracements and rising channels. Here are his latest thoughts on the topic.
All four of these indexes are now back above their 200-day Exponential Moving Averages.
The key to whether the upside rally can continue would appear to be the falling resistance drawn off the highs back in 1987 and the highs of the top of the wedges at Fibonacci 61% resistance.
This stiff resistance should bring back the topic of “harvesting at the top of the channel” and for some of us, the price and conditions in play may trigger some thoughts about scoring on defense at the top of the falling channel.
Let the “power of the pattern” be your friend and “trade the range!”