Friday's rally was strong, and although NFP euphoria fades, the Powell 'patient' remark and the resumption of China talks are very positive. An A-B-C rally takes us to the .618 retrace from the last high, which is close to the .5 retrace seen in the 20% drop in 1998, for example, and in 2016, before the inevitable double bottom some time in Q1. After that, it's anyone's guess.
2628-2644 is the confluence of the .618 from the last drop, the .5 from the ATH, the 29/30 Oct and 20/22 Nov closing lows, and and A-B-C extension from the bottom, given the New Year opening pullback. The parallel channel helps as well.
Buy a little below here for 2628, then sell for 2347.
I believe we are going to see 2960 and will not reach a double bottom. It was good analysis, if we do pull back you should think about raising the target to 2600 at the very least. Good luck
Sonic_scheme
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Look for the potential head to build, then the shoulder to 2600, ignore the inverse head and shoulder, everyone will notice it and the pattern will not be valid. However this is going to path.
Sonic_scheme
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Do you have a stop in place?
adatherton
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@Sonic_scheme, I've not done a firm trade, and yes, the market has gone above my red line area. If it goes past 2690, I am wrong.