wave pattern and momentum looking for a bit higher
Unlike corrections, bullish trends seldom end on a momentum high. They tend to exhaust, and leave a divergence in momentum. The pattern I see as a possibility here looks like a WXY corrective pattern.
Shorter term, the c-wave is possibly ending in an expanding diagonal formation, but needs another push to highs to complete the pattern. The interpretation is wrong if price moves below 208 before making new highs, and shouldn't exceed 216 on the upside. My target is 214-215 area.
Intermediate term, should this pattern play out, I'm looking for a correction that will retrace 38.2% at a minimum.
I'm posting a neutral bias here, because shorting against strong momentum is seldom advised. It's better to wait for an indication that the count is correct, meaning it reaches the price objective, and gives an indication of reversal. On the other hand, going long here is just as risky, with a very over-extended rise with very few pullbacks of any kind.
Shorter term, the c-wave is possibly ending in an expanding diagonal formation, but needs another push to highs to complete the pattern. The interpretation is wrong if price moves below 208 before making new highs, and shouldn't exceed 216 on the upside. My target is 214-215 area.
Intermediate term, should this pattern play out, I'm looking for a correction that will retrace 38.2% at a minimum.
I'm posting a neutral bias here, because shorting against strong momentum is seldom advised. It's better to wait for an indication that the count is correct, meaning it reaches the price objective, and gives an indication of reversal. On the other hand, going long here is just as risky, with a very over-extended rise with very few pullbacks of any kind.
In particular, you should spend no time at all thinking about those rosy scenarios in which the market goes your way, since in those situations, there's nothing more for you to do. - William Eckhardt