This idea is based on an expanding or ( megaphone ) pattern as the market is now showing signs of exhaustion at the upper parallel of the RED . Together with a nice 5 alternate candle reversal pattern and an 89 bar fib count from 3. I had my order in at 2066 which was the GAP price which I had a hunch would be filled. This entry opportunity has a tight stop and good risk/reward should it break to the downside. This week also co-insides with my weekly converging lines and similar weekly chart pattern which I believe is still in play ( see linked chart ).
Wavers: Although my ideas are based on A/R and theory based on the works of Alan Andrews not EW, and although I believe this potential high is an Expanding 5 ( replace 3 with a 1 count ), I have re calibrated the count to show what could be an EW corrective wave expanding symmetrical pattern, please note, I will stand corrected if I am wrong, and please provide feedback on your EW interpretations:) they are very welcome, however what it does show is that both methods can be used to pinpoint important turns in the market.
Note: The downward yellow will come in play should we get the reversal as it will provide additional entry opportunities as prices meet the lines. It also provides good take profit targets.
Downside Risk: High as the Bulls are on the wrong side of the pitchfork
Upside: The biggest hurdle on this bounce is the existing tops as it makes it's way to the ML....
This long sideways Basing range is usually a precursor to a breakout in price equaling the length of the base...will have to wait and see