GKP

Hi Diver,

I'm looking towards the main trendline from the 10p days which stands at around 138p today. 140/1 has been very significant in the past so it that level goes then I'd look to 87p personally.

An observation re your waves:

In your wave A down to 139.25p you've labelled the subwave c as an abc - a C wave must have 5 subwaves (ie your wave A has been counted as a 3-3-3 but it should be either a 3-3-5 or a 5-3-5).

In general I agree that it needs to go lower to complete any pattern. The only thing about 114p is that it's not really a major support (111.75p was a support once a while back) so it doesn't seem significant to me. I wonder...where is the 161.8% extension of wave ((a))? It might be somewhere near 87p perhaps (I haven't checked)?

Jackozy, the retrace to 139 is the first wave of an ABC which can be either a zigzag or a flat, dependent on what the current C wave does.
The 114 level is merely a fib extension in the present ((a)) & ((b))but happens to coincide nicely with the 76.4 retrace of the entire move from 5.75ish to 465.00 and has been a consistent support/res area thru 2009, 2010, and 2011.
Let's see what happens. It's all moving our way for the present. Take care and have a great Christmas.

I understand what you're getting at diver. Perhaps I'm being a pedant but all I'm saying is that a C wave of any degree ought consist of 5 subwaves, so your wave down from the triangle to 139.25p needs to have 5 subwaves not 3. It's just a technicality.

I actually think that the whole drop from 450p (465p depending on which chart package you use) counts better as a double with the 139.25 to 260p move as an X wave ie 450-139 as an ABC zigzag (5-3-5), 139-260 as an X, 260 downwards as another ABC per your labelling.

All open to interpretation though...

One thing I'm fairly sure of is that we'll see below 170p at some point.

wow lots of bearishness here, although some points maybe valid, let's look the opposite way to cover all basis EW element and focus purely on the pattern formation on the Weekly:

Here's the weekly chart and it seems like there is a rare pattern that (produces a powerful move once broken out) has formed or is still in process. Diamond Bottom ?

dl.dropbox.com/u/40497882/GKP_Weekly_Diamond.JPG

clearly the formation is developing on key support area's in sideways action ...

If this pattern is in play then there is a very good chance that the breakout will be as equally powerful of the move down.

www.thepatternsite.com/diamondb.html#DIB3

just something to ponder and certainly to keep an eye on...

Jackozy I didn't label the sub-waves as I wasn't concerned whether the ABC was a zigzag, flat, triangle, or multi-correction. Didn't have the time to be honest.

Ok Jackozy, this is especially for you
I took a little time during the interminable rain here to take a little more in-depth look at this chart. I could well still be wrong so don't castigate me too much. Time will tell huh?


screencast.com/t/fRztcyVXi


I think this has to be a flat. Could even be an irregular as B just about passed the start of A. The current double complex correction is headed straight down my 'slippery slope' towards 100% of ((a)) of C at 114 or; if it gets extended, then it should go no further than the 123.6fib around 93, possibly pushing to support at 87.

You and your family have a great time over the festive season and I wish you much prosperity for the New Year. Take care!