At this point, there are two possible roads I can see price taking. I am leaning toward price printing a triangle as drawn. We have an for the A wave and appear to be working on an for the B wave. The other possibility is that price prints a resulting in a flag. This latter possibility would still have price printing an for the A and B waves but then 5 waves down for the C wave. That C wave would have price targeting the blue .
Why am I leaning toward the triangle rather than the flat correction? There are two reasons: 1) In terms of the local TR , we have seen expanding and increasing candle spread from the July 28th swing low suggesting a move up from a Spring and, if so, then 2) we expect consolidation at the top of the TR before heading higher, which is what we are seeing. This consolidation is at the local TR resistance, the 2018 TR resistance, and the flag resistance denoted by the dashed red line. The target, based on the height of the local flag, is still the yellow box that I have had in the low-to-mid $13000s.
This target should be wave 5 off the , as shown. We could then expect a retracement to the blue zone at that time. Price has been printing the and the blue zone aligns with the target based on the height of the . This would take price just beyond the of that 5 wave advance giving us a pretty good larger wave 2.
H4 printed hidden , as mentioned above, on and MACD's histogram. remains oversold but is nearing a break out. is at 63.
Our premium Discord members now have access to our trading basics course included with their membership! We continue to add more content for new traders to learn how to be more effective and consistent when trading the market. H1 is nearing its descending resistance. A close above this resistance should indicate further price appreciation. is topped out and likely to need a rest before breaks above its resistance. Hidden divergence is printing on MACD's histogram supporting the belief that price will pullback before heading higher. This pullback would be inline with the outline of expected price movement.
M15 shows the IHS that printed with a target of ~$12225. Price appears to be printing a pennant/flag on that TF which would then have a target of $12500/$12525, based on the height of the flagpole. I am not a fan of this target because it really doesn't align with any other areas of confluence. However, the height of the flag as a target would align with the generally expected target of the IHS at around $12225. As always, if price continues moving higher than anticipated, traders can utilize the on the various TFs as possible targets until price prints a larger retracement.
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