PLEX market analysis~1~
PLEXes are often a major topic on Market Discussions. Their seemingly endless rise attracts all sorts of opinions and speculation.
What Price is Doing (WPD)
Price is still running above a massively strong trend line started back in 2011. If you go back to months or even years ago, you’ll see I had already drawn this trend line.
Price is going close to the all time maximum. Sellers have appeared in January. But what you see is not a bearish pin bar. A bearish pin bar must appear at the top of a swing high, while the January bar is at the bottom of a swing high. Anyway the situation is unstable and buying so close to the all time maximum is very risky. Considering price has gone away from the trend line and it’s going to hit the history maximum, there’s definitely a probability for price to react to such maximum by going down to the trend line in confluence with BRN 600M. Notice the word “probability”: price goes where it wants, following its own logic. All we can do is to discern the relatively rare time windows when price acts in a predictable way and then let it go wherever it wants.
Last but not least: in the previous PLEX analysis I have written: “If price will go above that line, it’ll invalidate the first top and will setup to go to the next target, which is the all time high of mid Oct 2012“. Guess what happened?