IMX Ready For A Brake Out?
IMX has been bullishly consolidating for the past months in what appears to be some kind of a reverse head and shoulders patter.
This is a daily line chart on a log chart as usual to show the change in percentage of value rather than simply change in price.
White squares represent the average range and when price consolidates it respects the spread of this range very well. As price brake the highs of a range a reasonable expectation is to rise to 50% of the range above and pull back to the bottom and then rise to the top of its new range and so on.
By simply duplicating this range up the chart we see confluence for stop #1 at the .441 retrace level for a very nice 18% move.
Stop # 2 is the reverse head and shoulders target measuring from the head to neck line and this value has confluence with the .625 retrace level and 50% of the range at that level.
IF IF IF price makes it to the .625 retrace level and pulls back but fails to the hold the bottom of that range it will be confirmation of a swing high and healthy retrace will be expected.
With that said there is another side to the equation. Price is also forming semi diamond pattern with right shoulder and closing below the low of the current range would be a clear indication the market is head to lower prices.
Trade well
This is a daily line chart on a log chart as usual to show the change in percentage of value rather than simply change in price.
White squares represent the average range and when price consolidates it respects the spread of this range very well. As price brake the highs of a range a reasonable expectation is to rise to 50% of the range above and pull back to the bottom and then rise to the top of its new range and so on.
By simply duplicating this range up the chart we see confluence for stop #1 at the .441 retrace level for a very nice 18% move.
Stop # 2 is the reverse head and shoulders target measuring from the head to neck line and this value has confluence with the .625 retrace level and 50% of the range at that level.
IF IF IF price makes it to the .625 retrace level and pulls back but fails to the hold the bottom of that range it will be confirmation of a swing high and healthy retrace will be expected.
With that said there is another side to the equation. Price is also forming semi diamond pattern with right shoulder and closing below the low of the current range would be a clear indication the market is head to lower prices.
Trade well
Comment:
chart not showing mark up when clicked on need to redo
