All Hail The Fall Channel Control Line

Honestly, after yesterday’s close I thought my model must be wrong somehow. I spent a couple of hours last night trying to find my mistake, and no matter how I looked at it I could find no flaw in it. It worried me. It shouldn’t have.

Yesterday’s low confirmed the short term baseline and today’s move took us out of the Fall Channel, right on schedule and right on the indicated price point. (Click the image for a larger view.)

Folks, if you’re wondering if this method works: It Does. The Fall Channel Control Line, when properly drawn, is the most amazingly accurate and precise artifact I have ever seen. So far, I have never seen it miss. You can learn to do this, too… Just read the Lines Of Force ebook.

So, we’re out of the Fall Channel. But that does not mean we’re done falling – just means that the channel is done. Normally we see a rise after leaving the channel, and after a couple or a few days we’ll see a correction to that rise. I usually expect price to come back and retest the baseline before moving on up.

KNDI is a really strong stock. Congrats to the folks who bought in on Wednesday, and good luck to you all.