Today we will speak about GE. Why? because it's on a situation that from a technical perspective is BEAUTIFUL.
Let's check those items:
1) Massive range that started in 2019 and was broken on March 2021. Remember that classical chart patterns tell us that when we have a range, we can calculate the minimum target extending the size of it above or below the breakout.
2) After the March 2021 breakout, the price started a consolidation on the edge of the previous major structure. From an Elliott Wave theory perspective, this is a Flat Pattern (composed by an ABC movement, which means that is 100% finished).
3) My conclusion is that this scenario is about to define a new direction when we observe the breakout of the flat pattern.
Directions:
Currently, the price is in the higher zone of the flat pattern, and I like the idea of thinking about bullish breakouts (I'm not interested in bearish setups). So let's explore this idea better:
If we have a clear breakout and the price reaches our horizontal green line, we will consider that as a confirmation of this new movement, and the targets we expect are either the 2nd level of the Fibo extension or the Range extension. Both are valid situations.
What if the price reaches the green line and then we have a bearish movement? This is impossible to happen because all our analysis goes in the right direction (100% win rate)... Just joking. You must think on levels where you will say "This is not going as expected fellas, abort mission". That level for us is below the flat pattern. So, if the price reaches our green horizontal line, we will consider that our view is wrong if the price goes below C.
Feel free to add any idea, or view about this situation, in the comments! Thanks for reading.
Let's check those items:
1) Massive range that started in 2019 and was broken on March 2021. Remember that classical chart patterns tell us that when we have a range, we can calculate the minimum target extending the size of it above or below the breakout.
2) After the March 2021 breakout, the price started a consolidation on the edge of the previous major structure. From an Elliott Wave theory perspective, this is a Flat Pattern (composed by an ABC movement, which means that is 100% finished).
3) My conclusion is that this scenario is about to define a new direction when we observe the breakout of the flat pattern.
Directions:
Currently, the price is in the higher zone of the flat pattern, and I like the idea of thinking about bullish breakouts (I'm not interested in bearish setups). So let's explore this idea better:
If we have a clear breakout and the price reaches our horizontal green line, we will consider that as a confirmation of this new movement, and the targets we expect are either the 2nd level of the Fibo extension or the Range extension. Both are valid situations.
What if the price reaches the green line and then we have a bearish movement? This is impossible to happen because all our analysis goes in the right direction (100% win rate)... Just joking. You must think on levels where you will say "This is not going as expected fellas, abort mission". That level for us is below the flat pattern. So, if the price reaches our green horizontal line, we will consider that our view is wrong if the price goes below C.
Feel free to add any idea, or view about this situation, in the comments! Thanks for reading.