Weekend Update: Since the last update, I’ve included an update in the post AND a comment regarding this technical formation. I figured it was time to put up a new post for readers to zero in on the important stuff.
Just to re-orient those that have perhaps not been following along…The WHITE channel near the top and bottom of the chart above are the channel that has existed since the February 2016 lows. The pink channel has been running along since August 2017 and only recently has price fallen out of the channel. Price is now rising up the lower trendline but price has not broken back into the channel. The 50-day moving average is in blue and is rising, the 200-day moving average is in salmon near the lower white channel line and is rising. All these things are bullish.
What does that mean? Well, it could be a long kiss goodbye where it keeps pecking at the lower trendline until the mood of investors swings to the downside. But as long as the world is happy: 1) it could just keep riding up the pink channel but never return to it; or 2) it could lead back into the channel next week. But so far, I think it is pretty amazing how price has respected that little pink line I drew on a chart back in early October. If price does get rejected, the 50-day moving average is a likely first stop. Happy Holidays everyone!