The following ideas hinge on price breaking out of the current set of triangles to the down side. We've got two concurrent triangles, one symmetrical, one descending. It is not scandalous to state that our over-all trend is still down since $650. A symmetrical triangle will break in the direction of the over-all trend 75% of the time, while a descending triangle is always bearish (i don't have a % for that one though ;p). A conservative short position would be to take an entry when we get a break below, close below $495. A more aggressive short entry would be taken on the breakout of the symmetrical triangle's purple support trend line; somewhere in the neighborhood of 500. This is a higher time frame trade and likely wont dive straight to target.
The trade plan for our triangle break out will lead us right into the first target of $477, which is the AB=CD completion point for the CD leg of our bat pattern. From there we'll be trailing stops to structure on our way to Target 2, which is the D completion point of our Bat, at $452. That level is also a historically strong support and is carried through the chart in faded red line just below D.
The trade plan for our triangle break out will lead us right into the first target of $477, which is the AB=CD completion point for the CD leg of our bat pattern. From there we'll be trailing stops to structure on our way to Target 2, which is the D completion point of our Bat, at $452. That level is also a historically strong support and is carried through the chart in faded red line just below D.