Price is apparently locked in a Harmonic Range; the most profitable environment for harmonic traders.
From the July '23 top, price printed a 0.618AB=CD(orange) and immediately had a natural harmonic reaction(NHR); which is the high probability minimal reaction one should expect from a Type1 harmonic pattern entry. After turning and creating a false support level, price fell sharply towards the orange pattern's HOP(harmonic optimal price) to potentially setup a Type1.5 pattern entry. This process caused the printing of another 0.618AB=CD(blue); it's HOP also tested @167.54. Price rallied sharply constituting the end of both Type1 long trades. From this peak @182.34 price declines sharply and pushes towards the 1.13 fib extension; creating a pivot(this is a textbook picture of the 'failed wave' phenomena associated with the 1.13 extension). This retesting, turning process presented a Type2 long entry for both orange & blue patterns and resulted in an extreme impulse that touched all Type2 targets.
Price printed a Bear Shark pattern(red) when it touched the 0.886 retracement @194.52 and, after divergent topping action, carved out a major pivot. The move down to 180.17 in Jan. '24 completed the Type1 Bear Shark entry and printed a Bull 5-0 harmonic pattern(not plotted, but the PRZ box is there in red). After an initial reaction and retest of the PRZ price surged towards the pattern's Target1, but peaked just short of it. This notwithstanding, price reaching the core measurement of the past Bear Shark(red) triggered a Type2 short entry. The target for this entry was @169.54. After spending a month creating a false support level the bottom fell out and price went to target.
This process has created a Bull Gartley pattern(purple). This large pattern has a Bull Deep Crab pattern embedded within it(aqua). A Type1 long entry was triggered, but, after a NHR, price has reasserted itself to the downside; setting up the potential for a Type1.5 long entry. Note the gap down towards 170.40 and the retest. To my eyes, this action is a confirmation that we are likely in a Harmonic Range. Ideally, price would show a false support level here and create a trap-door bottom near 167.17. Instead, it might continue to consolidate here for a spell only to breakout to the upside. In both of those scenarios, a strong earnings report will propel price higher. There are a few other scenarios based on the upcoming earnings dynamics, but those must be assessed at that time. If I'm wrong and this sucker wants to go much lower, expect price to show a false support level here and breakout sharply to the downside; exacerbated by a poor earnings report.
A bona fide Harmonic Range has two phenomena at work within it that makes it so attractive to harmonic traders. Within the range, patterns will emerge subsequently; offering many trade opportunities. And, due to the nature of a range, the patterns will not only enjoy an incredibly high win rate, but will also yield outsized gains relative to the harmonic trading model in a vacuum.
I have plotted the least steeply inclined potential down trendline and remain on the sidelines awaiting a signal to go long. If a trade is triggered, my sights will be set towards the top of the range @194.52.
From the July '23 top, price printed a 0.618AB=CD(orange) and immediately had a natural harmonic reaction(NHR); which is the high probability minimal reaction one should expect from a Type1 harmonic pattern entry. After turning and creating a false support level, price fell sharply towards the orange pattern's HOP(harmonic optimal price) to potentially setup a Type1.5 pattern entry. This process caused the printing of another 0.618AB=CD(blue); it's HOP also tested @167.54. Price rallied sharply constituting the end of both Type1 long trades. From this peak @182.34 price declines sharply and pushes towards the 1.13 fib extension; creating a pivot(this is a textbook picture of the 'failed wave' phenomena associated with the 1.13 extension). This retesting, turning process presented a Type2 long entry for both orange & blue patterns and resulted in an extreme impulse that touched all Type2 targets.
Price printed a Bear Shark pattern(red) when it touched the 0.886 retracement @194.52 and, after divergent topping action, carved out a major pivot. The move down to 180.17 in Jan. '24 completed the Type1 Bear Shark entry and printed a Bull 5-0 harmonic pattern(not plotted, but the PRZ box is there in red). After an initial reaction and retest of the PRZ price surged towards the pattern's Target1, but peaked just short of it. This notwithstanding, price reaching the core measurement of the past Bear Shark(red) triggered a Type2 short entry. The target for this entry was @169.54. After spending a month creating a false support level the bottom fell out and price went to target.
This process has created a Bull Gartley pattern(purple). This large pattern has a Bull Deep Crab pattern embedded within it(aqua). A Type1 long entry was triggered, but, after a NHR, price has reasserted itself to the downside; setting up the potential for a Type1.5 long entry. Note the gap down towards 170.40 and the retest. To my eyes, this action is a confirmation that we are likely in a Harmonic Range. Ideally, price would show a false support level here and create a trap-door bottom near 167.17. Instead, it might continue to consolidate here for a spell only to breakout to the upside. In both of those scenarios, a strong earnings report will propel price higher. There are a few other scenarios based on the upcoming earnings dynamics, but those must be assessed at that time. If I'm wrong and this sucker wants to go much lower, expect price to show a false support level here and breakout sharply to the downside; exacerbated by a poor earnings report.
A bona fide Harmonic Range has two phenomena at work within it that makes it so attractive to harmonic traders. Within the range, patterns will emerge subsequently; offering many trade opportunities. And, due to the nature of a range, the patterns will not only enjoy an incredibly high win rate, but will also yield outsized gains relative to the harmonic trading model in a vacuum.
I have plotted the least steeply inclined potential down trendline and remain on the sidelines awaiting a signal to go long. If a trade is triggered, my sights will be set towards the top of the range @194.52.