Dilernia Principles:- (Weekly Report 1st December)
1. Short-term:- higher weekly open has a much greater potential to reverse back down at the start of the new week.
2. Change of 3-day cycles:- probability of a reversal back down into the ‘gap’ re-test (3-day breakout)
Wednesday Support:- BUY Day
15:20
Wednesday opened below monthly timeframe support levels, and after some early support and 22-point upswing the market drifted down into an R87 low (spiral point)
The monthly 50% levels are the driving force in global market trends.
This primary spiral point is going to be verified by US market support overnight.
At this point price is trading below monthly 50% levels, and moving down from a higher weekly open. And as I mentioned nearly two weeks ago “a classic Bear pattern” sell off has now the potential in Australian markets to make a lower-lows in December.
Price has gone from above monthly support defined by 50% levels, to now being below monthly support levels.
UP swing from these lows will move 87 points upwards overnight or tomorrow if markets remain stable in US on Wednesday.
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