SURF'S UP
Analysis of HUI wave-tops
The above chart is our old friend the HUI, traced from the following:
I am going to argue that point P3 (Green dot in green circle) is a realistic target for the next wave-top. First I draw in the set of blue parallel trend lines, labelled A B C & D.
Up -Trends
Then I draw in the green power-up trend lines, another parallel set.
Power Up -Trends
The power up-trend channels are clearly seen preceding each major high. Channels are not only of similar inclination, but also width. I have also drawn in an upper third rail in each case, the significance of which I will explain later.
Notes to the above chart
1) Waves 1 and 2 broke out of the power up-trend to the upside before topping at P1 and P2 (where the third green rails touch the wave spikes). Note that no such formation has appeared with respect to wave 3.
2) The entire move for waves 1 and 2 starts with the price dropping below up-trend line B
3) A power up-trend line from this resistance break hits the wave-top spot-on for waves 1 and 2
4) If history repeats (and that is what a wave projection predicts) then the next top should lie somewhere on the power up-trend line hitting P3 (The green ringed dot)
The Timing Shadow
Now I am going to try to show that the destination of wave 3 is indeed P3
Notes to the above
ROCKET LAUNCHES
1) The blue vertical arrows indicate the onset of the final blow-off spikes for waves 1 and 2.
2) The launch for wave 1 was from the power-up-trend resistance
3) The launch for wave 2 was from the power-up-trend support (This wave is 'flatter' than wave 1 as evidenced by the closeness of the power-up channel to the line hitting P2)
4) The launch for wave 3 could come from either. I would not be surprised to see the HUI form a second lower power up-trend channel here, with the rocket launch being triggered where the lower green power up-trend line hits up-trend line C
TIMING SHADOW
5) The shadow across the chart represents the envelope of the up-move (from launch to wave top) for waves 1 & 2.
6) From this we can project the up-move and wave top for wave 3.
7) The up-move may commence where the bottom of the shadow hits wave 3 power up channel resistance.
8) The up-move ends where the power-up trend line hitting P3 intersects the top of the shadow. Which is at....
P3!
Please remember that TA is not an exact science. For my part I may sell some shares into strength above HUI 270.
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