We'll also be heading to that 350-360 area. This area is the BIG ONE as far as I'm concerned. For those that don't understand what I write, you're just going to have to trust me on this one. My drawing for this has a downsloping line so unfortunately it's difficult to give a very precise target. The 218 ish area allowed for a specific target. This next one will depend how fast we get there. Because the line slopes down, the quicker we get there the higher the target will be. Upon closer inspection, it looks like the area is a range of 345-360 ish. But I want to see a break above that resistance. That's confirmation for me. This would tell me we've entered a new bull market for CNC.
Are there any downsides here? And the short answer is yes. For example, I'm looking to see how fast we get to this resistance. Without getting too technical, so far it looks like we're still within the first leg up. If this strength continues before any significant pullbacks, then any break of that 350 ish area again would confirm it for me and my best advice to you would be you better hang on to your shoes and shirts because it's going to be a wild ride. On the other hand if we take our time to get there, then just "test" that resistance, we could have a substantial fall. Not going to exercise that at all right now because that's not what I think is going to happen.
Just look at it this way. The easiest way for me to explain it, is, all moves run within a defined timeframe. So the quicker we get there early on in a cycle, the more time it allows for the move to continue and finish within that time frame. Makes sense?? Good... GLTA