Right now we are consolidating at the 8600 level amidst a nearly 3 week upward trend. Pitchfork anchoring rules tend to be garbage in my experience which is why I use what works early on in a trend and that had paid off in the past. Our old fib top at 8447 fib has been tested and retested the last few days with fib and trend support converging later this session (around the new universal day (0001 hrs Zulu)). That could spell temptation for those hoping to see a retest at that 8447 level. If there is a retest, that would essentially be a choke point for a full on retrace or a decent bounce within the current pitchfork. Happy hunting.
Comment:
We stalled at the edge of my pitchfork around 0900 UTC this morning and then proceeded moving to the downside. This is likely the start of an intermediate retrace. Targeting shorts might be looking at around 8230 (previous support) to about 8130 (0.618 fib from the 18 December to 19 January move). A healthier retrace IMHO would take us down to the 0.382 fib at 7486 through previous support at 7360. That being said, long buys at 7360 might be too aggressive due to the long term diagonal support intersecting those levels at the end of the month. It's a quick trip down and it might spook some traders to get out and wait. Happy hunting.