It's mid-August, which means the kids will soon be back in school. If you recall any of your returning days to class, perhaps the memory is how smooth and easy it was, with little schoolwork beyond a simple quiz.
But the markets only take off on weekends and federal holidays -- so an investor shouldn't find the Pop Quiz question in the headline too demanding, especially since we'll provide the answer now, to wit: After a five-wave impulse move (in either direction) come a three wave corrective move. Bonus points if you also know the expected Fibonacci retracement multiple.
Senior Commodities Analyst Jeffrey Kennedy has identified the end of a lengthy five-wave move in a certain commodity, and the opportunity that comes with it. This market, which has declined almost 29% over the past six weeks, is "set for a sizable corrective advance."
Ever the careful instructor, Jeffrey stresses that "While we do have some very exciting potential in [this market] for now, or at least until we have confirming price action, it remains just that: 'potential.' The only thing that can confirm a wave count is price action, nothing else."
Jeffrey is also following a key technical indicator that likewise suggests a change in trend, and he spells out the key parameters this market must satisfy in the next few days to confirm the uptrend.
The obvious question is, "Which market is this?" Get access to Jeffrey Kennedy's classroom notes today, with a subscription to the
Futures Junctures Service.