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What does 1974 and 2009 have in common? They are two key Emotipoint (Emotional point) lows that have taken place in the past 40-years. 1974 low took place as Richard Nixon was being impeached and the 2009 low took place at the depths of the financial crisis.
If you take these lows and apply Fibonacci extension levels to them, a key 261% price resistance line comes into play. Not only does the 40-year Fib level come into play, two long term resistance do as well at (2) in the chart above.
Is this a “once in a blue moon” technical pattern? For sure this 40-year resistance combo hasn’t happened very often!!!