I kept the old line I drew from our last drop, I feel it will act as a strong support in any downward channel.
The red line is drawn from todays rejections. We made 2 desperate jumps to the upside in order to breach the yellow line I drew previously. Both of these failed and were met with a bearish drag down in price.
I see it as a nice head and shoulders pattern.
I expect us to complete the rounding top that we are currently in next week and float around 445-452. If we stay under that red line it will confirm our downward path in my eyes. If we breach the rounding top and head into 454-456 then we may have to wait a while longer for the downtrend to resume.
I have some puts expiring 4/18 and 4/29. April is usually a strong month for stocks. But the last 2 weeks have seen us pour on 8% of gains. I do not think this will be your standard April.
I expect before we climb we will need to clear that red line I have drawn and move well above it to end the day.
Hope you enjoyed the artwork.
The red line is drawn from todays rejections. We made 2 desperate jumps to the upside in order to breach the yellow line I drew previously. Both of these failed and were met with a bearish drag down in price.
I see it as a nice head and shoulders pattern.
I expect us to complete the rounding top that we are currently in next week and float around 445-452. If we stay under that red line it will confirm our downward path in my eyes. If we breach the rounding top and head into 454-456 then we may have to wait a while longer for the downtrend to resume.
I have some puts expiring 4/18 and 4/29. April is usually a strong month for stocks. But the last 2 weeks have seen us pour on 8% of gains. I do not think this will be your standard April.
I expect before we climb we will need to clear that red line I have drawn and move well above it to end the day.
Hope you enjoyed the artwork.
Remember that the gas prices (which are up 20% in the last month) were not included in the last CPI report. We will get a new report on April 12th and the Fed will start getting very hawkish. May 3rd is the date for the Feds meeting.
Personally I say this week may have some juice left to the upside but probably the week before CPI comes out we will turn more bearish.
TLDR: No big worries. If we crack 460 I will add on another spread 450-380 with a 415 target expiring April 29th. Either way we will be coming down prior to the Fed meeting on May 3rd.
Patience is a virtue.