{"id":160622,"date":"2019-11-26T19:41:15","date_gmt":"2019-11-27T00:41:15","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=160622"},"modified":"2019-11-26T19:41:15","modified_gmt":"2019-11-27T00:41:15","slug":"range-bound-into-the-end-of-2019","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/11\/range-bound-into-the-end-of-2019\/","title":{"rendered":"Range-Bound Into The End Of 2019?"},"content":{"rendered":"
November 26, 2019<\/div>
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By TheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n

Two of our favorite charts for following the US markets are suggesting the markets are range bound headed into the end of 2019.\u00a0 The news may continue to push the price higher as the overall bias has continued to be to the upside.\u00a0 Yet, our Fibonacci predictive modeling system is suggesting the current price trend has begun a \u201cscouting party\u201d type of move which may end in a moderate price correction fairly quickly.<\/p>\n

IWM Russell 2K Stock Index Chart<\/h3>\n

Our Adaptive Fibonacci price modeling system is capable of learning from past price activity and attempts to present key price data and trigger levels that are important for future trending.\u00a0 The GREEN and RED horizontal lines on the right edge of this chart shows where the TRIGGER LEVELS are for the Fibonacci system.\u00a0 The bullish trigger level (GREEN) is 2.5% above the current price levels.\u00a0 The bearish trigger level (RED) is nearly 16% below the current price level.\u00a0 This suggests that price would have to target either of these levels to establish a new price trend, or continue rotating within these levels to setup new minor peaks and valleys in the price \u2013 thus creating revised TRIGGER LEVELS. Get my updates by\u00a0joining my free trend signals email list<\/strong>.<\/strong><\/a><\/p>\n

What we find interesting is the current \u201cscouting party\u201d type of rally that is taking place on the right edge of this chart.\u00a0 This upside price move is above historical resistance (the CYAN LINE) and appears to be an attempt to test the support levels above the $160.50 level.<\/p>\n

If the price is successful in establishing support above this level, a new bullish trend may begin.\u00a0 If not, the price will rotate lower and potentially begin a new bearish price trend.\u00a0 Remember, the downside Bearish Trigger level is 16% below the current price \u2013 so that the downside move could be quite dramatic.<\/p>\n

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Transportation Index Weekly Chart<\/h3>\n

This TRAN Weekly chart highlights a similar range-bound price setup where the bullish and bearish Fibonacci TRIGGER LEVELS are well above\/below the current price.\u00a0 The upside Bullish Trigger Level is 4.15% above the current TRAN price level \u2013 thus price would have to rally at least 4.5% higher to qualify as a breach of this Bullish Trigger Level and qualify as a potential new bullish trend.\u00a0 The Bearish Trigger Level is near 18.4% below the current price level \u2013 thus the price would have to fall 18.5% from current levels to breach this Bearish Trigger Level and to qualify as a new Bearish Trend.<\/p>

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Where does this leave us headed into the end of 2019?\u00a0 Our researchers believe the Santa Rally that most traders expect maybe more like a lump of coal in 2019.\u00a0 We don\u2019t expect any big breakout rally to happen over the next 35+ days and we don\u2019t expect a massive 40% price correction either.\u00a0 Our Fibonacci price modeling system is suggesting that any rotation within this 20% price range would be considered \u201cabsolutely normal\u201d given the ranges that have been set up over the past 2+ years.<\/p>\n

Last week we share these charts on the VIX that paint a clear picture of what is likely to unfold in the next week. This current week is one of the strongest months of the year so<\/p>\n

Therefore, the downside price move of 6 to 12% would be completely normal.\u00a0 And the upside move of 2~3% from current levels would be completely normal.\u00a0 Any price rotation within the GREEN\/RED Fibonacci triggers levels would be considered \u201cnormal price rotation\u201d given the established price ranges, peaks and valleys.<\/p>\n

We\u2019ve been saying for months, 2019 and 2020 are certainly going to be interesting years for traders.\u00a0 We believe any price rotation or breakout could lead to a wide range of price rotation that may shock skilled technical traders.\u00a0 At this point, a 22%+ \u201cnormal\u201d price range has setup in the markets.\u00a0 Prices could rotate within this range and \u201cnot really go anywhere\u201d in technical terms.<\/p>\n

I want to wish everyone a Happy Thanksgiving and if you find this type of analysis interesting be sure to visit my website and sign up to get both my swing trade and investing ETF trade signals at 41% discount, plus a free bar of silver or gold with my Black Friday Offer Today!<\/strong> Visit:\u00a0www.TheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n

Chris Vermeulen<\/p>\n

TheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

By TheTechnicalTraders.com Two of our favorite charts for following the US markets are suggesting the markets are range bound headed into the end of 2019.\u00a0 The news may continue to push the price higher as the overall bias has continued to be to the upside.\u00a0 Yet, our Fibonacci predictive modeling system is suggesting the current […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-160622","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/160622","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=160622"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/160622\/revisions"}],"predecessor-version":[{"id":160625,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/160622\/revisions\/160625"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=160622"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=160622"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=160622"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}