Choose your own bearish adventure.

We have bear flags forming in a fractal pattern pointing down to a retest of the 6600 low, if not a test of even further Fib levels.

We also have an apparent descending wedge culminating at 7200.

Both scenarios say that the local maximum is either here at ~8300, maybe as high as ~8500 depending on how far the current bear flag gets, but what happens next depends on which pattern holds more true.

...we could also see a heroic surge of volume as bulls break the resistance channel somewhere.



I am very much an amateur and you should definitely not take this as financial advice - I'd love any feedback I can get.

Comment:

I probably should have added - the smallest fractal bear flag almost exactly points to the bottom of the wedge right now, especially if the flag breaks down before reaching the end of the channel. This is more in line with the fractal pattern then projecting the larger flags down through the wedge.

I would think that if we test there and don't go straight through, we'd expect to go to the end of the bottom of the wedge.

A lot of other predictions right now seem to think the wedge lines up perfectly with a wave pattern, so... maybe. Seems pretty clear that on any of these paths the price goes down from here without a surprise bullish breakout somewhere (G20 news expected next week, which could add rocketfuel and blow up any pattern if it's perceived as really good or really bad) - it's just a question of to what price on what timescale.