Posted Oct 25, 2013 by Martin Armstrong
“The Monthly Bullish Reversal stands at 14700. Technical resistance for a possible January high stands at 145-147 followed by 156 and 178.”
The Reversal is our system target for the maximum high.
The “Technical” resistance is simply levels within the market where they exist. This is not a forecast. It is a MAP. In other words, you should NEVER enter a market without knowing where you are wrong. That is simply good trading. The technical analysis point to the 145-147 level with a gap thereafter up to 156 and 178. The likelihood of seeing those levels is not very high. Just as we have given the overhead resistance in gold at $2400. There is a difference between providing a technical MAP of support and resistance so you know what to expect IF such a level is breached. That by no means amounts to a forecast. It is purely a road-map to ascertain risk.
You always move to extremes before the move precisely as did gold in 1970 falling BELOW the Bretton Woods fixed rate of $35. The extreme is reached in both directions and that is typically the signal for the reversal in trend. Hence, the Euro could move to the extreme point of 147, convince everyone the US is the problem, then reverse in the opposite direction. It is ALWAYS important to map out a market showing where the major gaps are between resistance and support. That is by no means a forecast.