$PCLN and a potential mirror image fold back

have blogged about “mirror image foldbacks” before … when they work they are truly amazing.  do a “search” for Mirror Image Foldback on this site and you’ll see the work.  right now, it appears the Natural Gas Mirror Image Foldback is at risk of feeling … other than that, most have worked.

here’s the picture of a mirror image foldback for $JEC.  note the geometry of the parabolic blow off.  much like a LOT of stocks out there …

then, below these charts is the mirror image foldback for $PCLN.

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here’s the POTENTIAL mirror image appearing on $PCLN. Note, the second chart shows the “daily butterfly sell” that is “causing” this … this will be a very good one to watch.  These patterns all fail when the high is taken out .. all probability folks.

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Parabolic Moves have NEVER ended well …

Below you’ll find charts showing the parabolic blow-off of the NASDAQ, CTX (housing), LEH (banking/investments), JEC (oil services), Green Mountain Coffee (GMCR) and Apple (right before it lost 50% of it’s price – remember?)

The reason I post these charts is because when I look at IBB, NKE, XLV, etc I see the SAME PATTERN.

Again, Parabolic Advances have NEVER ended well … Untitled 5-6-12-Bart-Bubbles

here’s the physics:

hw-honeybee

once velocity hit 8 m/s and around 2.5 seconds into it IT COULD NOT GO ANY HIGHER AND THE VELOCITY COLLAPSED.  Folks, at a certain point the lack of liquidity and the parabolic nature of anything will prove Sir Isaac Newton correct …

Sir Issac Newton and $AAPL Fell From the Tree

so, perhaps we are at 3-4/ms at time 3 … but soon, in the near future these stocks/indices/interest rates will hit 8 m/s and 2.5 seconds and then the drop will be vicious.

JEC, SILVER past fractals and the Pound

Foldbacks are amazingly accurate patterns … they occur on anytime frame and basically give us the “mirror image” of a move … the theory is as they come into an inflection point they will go out of the inflection point the same way.  for those still versed in geometry, it’s basically the angle of incidence equals the angle of reflection.

here’s one of many pictures that I have of long term foldbacks in process … it’s a long term chart of JEC (Jacobs Engineering). The first chart shows the geometry of the parabolic move up, the second chart shows price action around the foldback and the third chart shows the result.  Exhibit 1 JEC

JEC REAL TIME foldback pattern developing
JEC REAL TIME foldback pattern developing

 

JEC foldback result ...
JEC foldback result …

if you go back and study the Silver posts you’ll see that the most recent all time high on silver was just like the above … a mirror image foldback.  IF (the big IF) you find the correct balance point then you can watch movement w/ a leading understanding of what to EXPECT (again, only PROBABILITY)  Here’s a quick review of the Silver Chart … everything based on the FOLD BACK.

SILVER long term FOLDBACK
SILVER long term FOLDBACK

 

price action according to the foldback
price action according to the foldback

 

so, much like JEC and SILVER we find a nice POTENTIAL FOLD BACK occurring w/in the Great British Pound Chart ….

POUND foldback POTENTIAL
POUND foldback POTENTIAL

 

4 hour intra-day look at the pound POTENTIAL fold back setting up
4 hour intra-day look at the pound POTENTIAL fold back setting up

only time will tell if have the fold back working … the great thing from a risk management perspective is they USUALLY only FAIL at the inflection points so a little bit higher on the Pound will tell us a lot.

Here’s past POUND analysis as I continue to try and get short: http://bartscharts.com/2013/10/22/the-pound-gorillas-and-juggling-dynamite/ OBTW ‘best and final’ is still a target so we’ll just have to manage some risk and “scale up” short.  Stay tuned …