Price is Over Channel/Ws/Sharks, Cyphers & Fib Levels
Price has broken the top trendline of the channel down.
Many of the stocks have the W pattern in the chart as of late. This one has moved a lot more and much faster than the others with this W that I have been watching.
Valley 2 is lower than valley 1, and the retrace/uptrace leg hit the .382, so when this turned up for the last leg of the W, I then know this could be Cypher or a Shark, and it is a bearish harmonic pattern even though the last leg of the W can be an excellent long.
The Cypher is labeled and measured in a different way than the Shark and is also less common. The Cypher is labeled XABCD and D is calculated using the XC leg or the entire structure and lands close to the .786 of XC. Price has passed the .786 of OX, or the first leg, on it's way up so that is a clue that this is a Shark. The uptrace or second leg of the Cypher should hit the .382 to the .618 range, not much more or much less. So there is a rule for leg 2 which is AB. There is not a rule for the Shark's 2nd leg as long as it does not pass O.
The Shark lands close to the .886 of OX but sometimes hits around the 1.113 of OX. The 1.113 and the .886 are marked. The prior bullish shark (peak 2 is higher than peak1) in this chart hit the 1.113, so it does happen.
If it were to break the right shoulder resistance level, then it is back to the drawing board. Price has touched the .886 on Monday.
The crooked W is called the bearish version of each of these patterns. The crooked M is known as the bullish version, but can feel mighty bearish on the last leg down, just like the bearish version can feel pretty bullish on that last leg up.
The bearish versions have the impulse wave to the downside. To measure crooked Ws, I put the fib table with the 0 at the bottom as I am looking for a level to the upside. For bullish structures or crooked Ms, the 0 goes on top as I am looking for price to pull back on the last leg.
There is also a head and shoulders pattern and SNPS is trying hard to break that right shoulder. Time will tell and unfortunately any pattern, support level, trendline or resistance level can fail.
The Auto-Fib Retracement tool on here is great for nailing a turning point (o:
No recommendation and watching for now. Neutral until price makes a definitive move.
Sorry for the messy chart but I wanted to leave the fib tables on the chart.
If I can't spot the sucker within 30 minutes of sitting down at a table, it could be me )o:
Many of the stocks have the W pattern in the chart as of late. This one has moved a lot more and much faster than the others with this W that I have been watching.
Valley 2 is lower than valley 1, and the retrace/uptrace leg hit the .382, so when this turned up for the last leg of the W, I then know this could be Cypher or a Shark, and it is a bearish harmonic pattern even though the last leg of the W can be an excellent long.
The Cypher is labeled and measured in a different way than the Shark and is also less common. The Cypher is labeled XABCD and D is calculated using the XC leg or the entire structure and lands close to the .786 of XC. Price has passed the .786 of OX, or the first leg, on it's way up so that is a clue that this is a Shark. The uptrace or second leg of the Cypher should hit the .382 to the .618 range, not much more or much less. So there is a rule for leg 2 which is AB. There is not a rule for the Shark's 2nd leg as long as it does not pass O.
The Shark lands close to the .886 of OX but sometimes hits around the 1.113 of OX. The 1.113 and the .886 are marked. The prior bullish shark (peak 2 is higher than peak1) in this chart hit the 1.113, so it does happen.
If it were to break the right shoulder resistance level, then it is back to the drawing board. Price has touched the .886 on Monday.
The crooked W is called the bearish version of each of these patterns. The crooked M is known as the bullish version, but can feel mighty bearish on the last leg down, just like the bearish version can feel pretty bullish on that last leg up.
The bearish versions have the impulse wave to the downside. To measure crooked Ws, I put the fib table with the 0 at the bottom as I am looking for a level to the upside. For bullish structures or crooked Ms, the 0 goes on top as I am looking for price to pull back on the last leg.
There is also a head and shoulders pattern and SNPS is trying hard to break that right shoulder. Time will tell and unfortunately any pattern, support level, trendline or resistance level can fail.
The Auto-Fib Retracement tool on here is great for nailing a turning point (o:
No recommendation and watching for now. Neutral until price makes a definitive move.
Sorry for the messy chart but I wanted to leave the fib tables on the chart.
If I can't spot the sucker within 30 minutes of sitting down at a table, it could be me )o:
Komen:
KLAC is trading in much the same pattern
