Markets Update — Point of Recognition
This is an update to our last piece titled The Flush dated 26th November’ 21.
Since breaking its triangle corrective pattern on 26th November, the APEX50 remained range-bound right up to Federal Open Market Committee (FOMC), confusing many — ourselves included.
Today’s price action, however, despite the index already being in oversold territory (for some of our technical indicators), is confirming that we are on track in our suggested scenario — A Final Flush.
Hence ATEC looks for guidance from the next Fibonacci level of around 1428, or some 5% ish from here.
Again, it is an area target and hence we will still need to follow the price action as it develops. A sustainable bottom (at least for Asia) should be marked by sentiments of despair and distrust. We will be looking for evidence of these as well.
Good luck out there and happy Christmas.