*EDIT*: Please ignore the big chart. The analysis is below.
Hello traders,
We had a 0.786 retracement of our recent high. A move down to the reciprocal at 1.27 would complete this ABC retracement. The Potential Reversal Zone (PRZ) is 8193.66-7522.96. *EDIT*: Yes, that should read 1.27BC, not 1.27AC.
For fun, I also charted out an AB=CD pattern for the potential measured move. A high for this short corrective triangle of 10558.58 would give us a perfect 0.382 retracement, with a reciprocal of 2.618. 2.618BC and AB=CD coincide here at 7708.12, which gives us another target within the PRZ.
As you all know, the price should find plenty of support at those levels.
Good Luck
For more on harmonic patterns:
https://www.amazon.com/Harmonic-Trading-One-Profiting-Financial/dp/0137051506/ref=sr_1_2?crid=42IJX06767XT&keywords=scott+carney&qid=1566183619&s=books&sprefix=scott+carney%2Caps%2C169&sr=1-2
Hello traders,
We had a 0.786 retracement of our recent high. A move down to the reciprocal at 1.27 would complete this ABC retracement. The Potential Reversal Zone (PRZ) is 8193.66-7522.96. *EDIT*: Yes, that should read 1.27BC, not 1.27AC.
For fun, I also charted out an AB=CD pattern for the potential measured move. A high for this short corrective triangle of 10558.58 would give us a perfect 0.382 retracement, with a reciprocal of 2.618. 2.618BC and AB=CD coincide here at 7708.12, which gives us another target within the PRZ.
As you all know, the price should find plenty of support at those levels.
Good Luck
For more on harmonic patterns:
https://www.amazon.com/Harmonic-Trading-One-Profiting-Financial/dp/0137051506/ref=sr_1_2?crid=42IJX06767XT&keywords=scott+carney&qid=1566183619&s=books&sprefix=scott+carney%2Caps%2C169&sr=1-2
Comment:
Actually I goofed. the 0.786 is from the second high at 13202.63. I'll have to redo the chart in the morning.
Comment:
Correct AB=CD is 8188.77, giving us a much smaller PRZ. It also changes the current triangle from a midway point to 0.618, which would make sense if we were in wave 4 with an extended wave 5 down to the target.