HOWEVER, in the short term, I'm expecting prices to reach the 124 level where there is a confluence of factors that will cause prices to retrace back down (see my post on "Clear Pattern ending at critical S/R 124-124.150 level" post). There will be many SELL STOP orders lying there in wait causing a large reversal of the SHORT-TERM trend. I'm expecting that prices could quickly retrace down to the 105- 105.50 levels. At this level, it is the . of the larger weekly uptrend and also a major daily .
From there, I would expect prices to resume the MAJOR Monthly uptrend eventually reaching the 132.135 levels. At that level, there is a MAJOR sitting at the 135 level which is also a MAJOR MONTHLY swing point high. It is also the .786 retrace of the overall YEARLY downtrend.
This price action would also support an pattern that might be developing starting from Point A at the low of the most recent leg up. Assuming prices follow the path I'm projecting, then the ending of the potential CD leg will also end at/near the 132 level and the .786 retrace of the YEARLY downtrend. This is of course a very premature outlook as Point B has yet to be established.
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