Can we expect a bounce here? Rally and a double bottom should take it back to 50+
If Gartley works, we should see retrace to Target-1 & Target-2 for the next pattern.
Will be nice to see some embedded bullish Gartley before AB=CD and Bearish Gartley
RED Arrow = Resistance Green Arrow = Support Blue lines = AB-CD Pattern. RED lines = Gartley.
Couple of patterns: First retracement of AB to 61.8 was decent for bullish continuity but was not held there. Thought initially it is kinda ABC wave up but failed. MLNX recent drop on a accounting material weakness (600K USD for charities, what a duh!), the stock was dropped to a Gartley retracement of 0.787 of XA. A friend of mine pointed to Diamond pattern...
Gartley pattern says Bearish, if the PPS reverses. stopped here. TrendLine breakout says likely bullish. Next one week trading should confirm the pattern and direction.
The Measured move down is 46 @1.29%. Aggressive move down can be upto 41 @1.618.
Will be nice if it closes above 8.5 by month end with great continued volume. Next month Same store sales will give further direction to 12 or consolidation here...
If it bounces off of 61.8 retracement , looks like GARTLEY pattern ...