On May 20, 2012 the Tritanium market looked as follows:
In particular, if we look at the range market (RM) where price is currently in, we will see this zoomed in detail:
Not only Tritanium seems unable to push through the RM but it formed what could become an “M” shaped double top. It’s still too early to know and the red long term support trend line below the bars is still holding. I am going to take another partial profit, the next day price will hit the RM top again and therefore I will sell at the highest possible price for this RM.
Another very strong reason for taking profit comes from the past week weekly graph. It’s easy to see how given the rule: “a PB will bring price to the maximum (minimum for bearish PB) of the bar before it”, the price acted as expected and reached the target. From now on, price is free to fall again, expecially since it hit the weekly resistance and was unable to close above it, therefore buyers are exhausted.