Don't overreact to this gap down as being any kind of trigger to go short! Yes, the gap down did break the lower of the SLIGHTLY but I can't count the number of times that a proved to be nothing but a false break! Especially the first time.
Instead, I choose to see this gap down as an "expected move" to complete the . patterns tend to complete explosively. Meaning the last move to the D point tends to be a pretty strong move into the PRZ. This gap down qualifies as a strong move! I expected that prices would push strongly into the PRZ and even move slightly past it (see my analysis). It did exactly that and I see this as a good confirmation signal that the is valid.
I am already LONG from the open and the gap down expecting the gap to be filled and the to work it's magic! If everything goes according to my analysis, it should be a nice ride up into the upper of the flag for a nice 750+ pip gain! I posted profit targets for those that want to take profits accordingly but I am holding this trade for the long term expecting prices to reach the top of the to complete leg C of the consolidation. You are free to choose your own profit targets.
Though my analysis, if correct could lead to a nice move up and 750+ pips, be aware that this week brings A LOT of big news events and this market can and will show much With Greece set to default on their loan tomorrow, anything can happen. Then of course, this is also the NFP week. So expect large movements. Don't gamble! Invest wisely. And realize that my analysis of what is to come is just MY OPINION and is not a trade call! Make your own trading plan and trade it! As has been said so many times, "PLAN YOUR TRADE. TRADE YOUR PLAN!" My analysis and those of the many other great analyst who post here are only providing some insight as to how we are thinking. USE WITH CAUTION!
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