INTC 0-5 pattern - the likely resolution of this pattern is downside, but if it can't go down, then it violently pushes upward to 88.6%. This is a contrarian trade, lot of people are betting downside move, options are skewed a lot to downside, so likely it goes up, the risk to reward is to upside.
OMXS30 continues to be bullish and are looking to face two resistance levels ahead.
First one is at the level of "X" in the pattern, wich is strong nut we Do see some tests just above lining up with the top of the Sharks PRZ.
Expected reaction from the Shark is a 38.2% Fib, but often we can see a pullback down to 50% where w, in that case, have a 5-0 pattern ...
Following 5-0 Pattern Harmonic
Price touch strong support by uptrend line W1 and fibo retracement 50%,and touch fibonacci extension 127.2 % of AB.
Follow 5-0 pattern price will test fibo retracement 50% of BC and go down retest uptrend line W1.
If the price break uptrend line W1,it will go down and test fibonacci extension 2.24 of AB (1232).
The FTSE 100 is shaping up nicely on the 4h chart, I'm expecting this bullish 5-0 formation to complete within the next few weeks at the 50% retracement level.
The measurements for a valid 5-0 pattern are detailed below.
B: 1.13 - 1.618
C: 1.618 - 2.24
We will be trading with a stop loss below the 0.618 retracement level at 7240. If we execute the ...
well that's going to be the ultimate question here as to whether you're long or short.
Ultimately, I say we going down but this is 50% retracement to decide whether we bounce to fulfil bullish 5 drives or continue falling to fulfill Bearish Shark.