With more than 2 months of choppy sideways direction, the pattern is finally revealing itself as a giant triangle with a likely possibility of it breaking down.
Confirmation: Below $280/$270
Invalidation: Above $335
Target1: $230
Target2: $170/150
-Elliott waves also align with this being considered as a (B) wave formation
-50DMA ($308) has crossed below 200DMA ($318), this is considered as very bearish
We now appear to be done with the D wave, and then have a final move up as E to around $320+ before breaking down.
The Fib levels are textbook
Waves
B retraced 0.786 of A
C retraced to 0.786 of B
D retraced to 0.786 of C
C is 0.618 length of A
D is 0.618 length of B
However, triangles are tricky and can break in the opposite direction, so our stop will be $335 (top of C) which would confirm this was NOT a bearish triangle
This idea also aligns with my 2 previous posts
Confirmation: Below $280/$270
Invalidation: Above $335
Target1: $230
Target2: $170/150
-Elliott waves also align with this being considered as a (B) wave formation
-50DMA ($308) has crossed below 200DMA ($318), this is considered as very bearish
We now appear to be done with the D wave, and then have a final move up as E to around $320+ before breaking down.
The Fib levels are textbook
Waves
B retraced 0.786 of A
C retraced to 0.786 of B
D retraced to 0.786 of C
C is 0.618 length of A
D is 0.618 length of B
However, triangles are tricky and can break in the opposite direction, so our stop will be $335 (top of C) which would confirm this was NOT a bearish triangle
This idea also aligns with my 2 previous posts
Comment:
Target1 hit
