DJI Public Announcement
Broadening (Top?) Patterns are formed in times of widely varying market outlooks, and the DJI has formed two megaphones recently. One on the weekly(maroon) and one on the monthly(blue). In both cases a strong parabolic rise preceded the pattern (in green), followed by a 5 wave broadening wedge. The megaphone starting in 1998(blue) eventually broke out to the top, finding support on this line and going parabolic into the megaphone of the last few years. Interesting, the second megaphone, also broke out to the upside before being smashed back into it on the recent drop from the ascending wedge to test the bottom line as support. Currently, we have a strong monthly wick off both the blue megaphone and the maroon megaphone support line. Will these support lines hold and we see another wave up and out of the maroon wedge, to ATH's and perhaps touch of the cyan channel in another smaller fractal megaphone movement? Or do we break this support and head to the bottom of the cyan channel???
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