ANALOG DEVICES: THE DILEMMA OF EXTENSION OR RETRACEMENT ??!!
Double top reached at price level 127, we have a symmetrical triangle type formation as a possible terminal figure within a fifth zig zag ascending channel.
The dilemma posed by the graph is whether it has completed the fifth zig zag within the bullish channel or if, on the contrary, this triangle is a corrective wave four and its extension will be sought higher in the 261.8% fibo and price level 132.
We will be watching the range of the RSI and the ADX to observe if it is going to look for its extension above or its retracement in bearish triangle and channel breakout.
The dilemma posed by the graph is whether it has completed the fifth zig zag within the bullish channel or if, on the contrary, this triangle is a corrective wave four and its extension will be sought higher in the 261.8% fibo and price level 132.
We will be watching the range of the RSI and the ADX to observe if it is going to look for its extension above or its retracement in bearish triangle and channel breakout.
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