Consequently, next move will likely resemble to June's bounce before further movement down. I evaluate the retracement between 50% and 38% Fibo levels (orange ) with potential gap fill.
On the other hand i found it hard to believe prices will behave the same way again, thus keeping in mind another case scenario that could align nicely with my long term fibonacci levels. In order to explain this i believe the market is actually in some kind of range mode although it necessarily needs, from a Fibonacci point of view, to take out the 173.36-175 23 price level (retracements from 2009). the second case scenario would exactly do that, shaking every bear left in this market, maybe trap some late bulls and ultimately surprise the rest as always...after what we'll experience some real selling. This would be case scenario number 2. I am ready for both case scenario and will evaluate every sign of the market to act accordingly, but you have to admit scenario number 2 has more of an actual wicked market touch to it and i like it.
I will be watching prices around MA34 and capacity to stay above 50% (green ). GL.
After more careful observations my scenario 1 is more likely form an historical point of view. 2011 highs (view chart) presented the same kind of movements before big drop on this concurs with my previous ranging market analysis too===>
But as always, what really counts in this game is to be prepared, unpredictable macro data could easily make the choice between number 1 or 2 scenario and the better prepared you are the fastest you'll see the move and click the mouse to open a trade at the best risk/reward ratio (157.37 ratio is at ~ 8-10 from these levels)... GL