We are only two successful patterns from 17k!!
In the next week:
First, I expect a rejection to retest today's log breakout:
9000 is a strong resistance for 3 reasons:
- Round number effect
- Fib 0.5 will encourage shorts
- On level of March 22nd high.
There were very strong bullish signs in the last week, and we can expect a battle for control at 7800-8000.
In the coming 2-3 weeks:
Obviously nobody knows where the market is going but sentiment is that the bulls are clawing back control. I am inclined to say we are heading towards the formation of an IH&S, once again retesting 9000.
If this formation is successful we can expect to revisit 11400, forming an Adam & Eve pattern from this entire year's action. There will be a lot of sideways action around key resistances but the confirmation of today's log breakout will embolden bulls and intimidate bears.
In the next month:
As price continues to rise and bears adjust to the prospect of an incoming bull market we will see greater momentum. If the A&E is a success we can expect 17000+.
Disclaimer
From Bulkowski's Encyclopaedia of Chart Patterns, the IH&S would have a 74% chance of success and the A&E 66%. Combined, we have a 50% chance of reaching here IF the price rebounds from the log support. I am not making any buy/sell recommendations, but I will be following this as a basic plan. Play carefully until the formation of the H&S, and place conservative stops before each point of interest. Always wait for pattern confirmations and it's always better to take no action than to place a trade if you're not certain.
We are only two patterns away from success, let that sink in!
Any suggestions or commentary are welcome! You might save me some money. Cheers!
In the next week:
First, I expect a rejection to retest today's log breakout:
9000 is a strong resistance for 3 reasons:
- Round number effect
- Fib 0.5 will encourage shorts
- On level of March 22nd high.
There were very strong bullish signs in the last week, and we can expect a battle for control at 7800-8000.
In the coming 2-3 weeks:
Obviously nobody knows where the market is going but sentiment is that the bulls are clawing back control. I am inclined to say we are heading towards the formation of an IH&S, once again retesting 9000.
If this formation is successful we can expect to revisit 11400, forming an Adam & Eve pattern from this entire year's action. There will be a lot of sideways action around key resistances but the confirmation of today's log breakout will embolden bulls and intimidate bears.
In the next month:
As price continues to rise and bears adjust to the prospect of an incoming bull market we will see greater momentum. If the A&E is a success we can expect 17000+.
Disclaimer
From Bulkowski's Encyclopaedia of Chart Patterns, the IH&S would have a 74% chance of success and the A&E 66%. Combined, we have a 50% chance of reaching here IF the price rebounds from the log support. I am not making any buy/sell recommendations, but I will be following this as a basic plan. Play carefully until the formation of the H&S, and place conservative stops before each point of interest. Always wait for pattern confirmations and it's always better to take no action than to place a trade if you're not certain.
We are only two patterns away from success, let that sink in!
Any suggestions or commentary are welcome! You might save me some money. Cheers!