Rare Element Resources (REE) Elliott Wave: REE put in a Monthly Cycle High at 14 yesterday 10-28-10 versus an early October 7.02 Monthly Cycle Low, see http://stockcharts.com/charts/gallery.html?s=ree.
Wave A Down of REE's Monthly Downcycle bottomed just after today's open at 10.31, see http://finance.yahoo.com/q/ta?t=5d&l=on&z=l&q=c&p=v&a=ss&c=&s=ree. Note that Wave A Down did the usual inverse Elliott Wave 12345 down up down up down pattern.
The anemic counter trend Wave B Up of REE's Monthly Downcycle probably peaked late today 10-29-10 at 11.69, see http://finance.yahoo.com/q/ta?t=5d&l=on&z=l&q=c&p=v&a=ss&c=&s=ree. Waves 1 and 3 of the counter trend Wave B Up move occurred very early on, as REE filled the 11.30 upside gap/magnet from the open.
A likely scenario as to when the final Wave C of REE's Monthly Downcycle will bottom is shortly after filling the 10.11 downside gap/magnet, since the next downside gap/magnet isn't until 7.65 (more at 6.70, 5.83, 5.03, 4.55, 4.44, 3.77, 2.80, 2.54, 2.22, 2.03, 1.96, 1.80, there are probably more downside gaps below 1.80).
Obviously, REE is so volatile right now that one can't rule out that the 7.65 downside gap/magnet and possibly others get filled in this Monthly Downcycle (since peaking at 14 yesterday 10-28-10), but, the distance between the 10.11 gap/magnet and 7.65 is large enough, and, REE already experienced a huge decline in Wave A (from 14 to 10.31), that a Monthly Cycle Low target of 9 to 10, possibly being hit on Monday (seems likely), seems logical and reasonable.
The target range must be wide, because, REE is so volatile now. I'll be looking to day trade REE (and maybe MCP) on Monday, if I'm convinced that a Monthly Cycle Low has occurred. Hopefully, a major volume spike will occur as REE bottoms, to confirm the Monthly Cycle Low. Ciao
No comments:
Post a Comment