I based this idea on an idea from another member (tradingview.com/u/FullTimeTrader/) If you agree then make sure you like his idea first (see linked idea)!
The bat pattern in the original post if not valid anymore for me since we had a significant selloff at the 0.786 level. I am a bit worried about a possible butterfly pattern (not drawn here, I might post it later) which could be forming, in that case we will continue higher and possibly even overshoot the January high!
The AB=CD pattern in the chart however is a perfect AB=CD pattern as described by Scott Carney in his book Harmonic trading (Vol. 1), i.e. a 61.8 retracement of AB forming the C point and D at a precise 1.618 projection of BC!
A 50% to 61.8% retracement should be expected now if this pattern works out. A perfect bearish 3 drives pattern could follow which would mean a retracement to 61.8 followed by another 1.618 extension. Because of this I will take 3 targets: - TP1 at the 38.2% retracement (30%) >> partial profits booked, SL remains - TP2 at the 61.8% retracement (50-60%) >> main target, most profits booked, SL to BE or TP1 - TP3 at the 88.6% retracement (10-20%) >> additional target at previous structure
SL above structure resistance.
In case this setup fails I will short again if we reach the January high level.