Yea, it looks like a 4 year old got ahold of a placemat at the restaurant and was then given crayons. It looks like a GD mess, I know. But bear with me.
1. This box of congestion here, near a historical support line has been thoroughly tested. And I’m not much of a harmonics guys, but that is a fairly clear pattern we have there, it’s , which in combination of where price has been trading is even more . Green arrow indicates my first profit target.
a. Also, OMG I’m kind of nerding out but not only is price going to test this Fib level, but there are two intersecting lines there. That’s exciting for two awesome reasons:
i. If price breaks and holds above those intersecting lines, that means the downtrend of that Line has ended and:
ii. we begin to follow the up trend of the positive sloping Line. Bullish .
2. Just look at the . There has not been a lot of interest at these lower levels for pushing price lower.
3. Now look at this fixed range . Like I said on number 1, I want a return to the POC (point of control) for my first profit target. The POC is like a magnet, the farther you get, the more it wants to come back. And look at the between the .236 and 0 Fib lines. Its lower than average and we have a greater number of shorts there than buyers, but price has been going up. This is probably going to be a short fueled rally.
4. It’s very probably that we have some nice acceleration all the way to the .5 Fib line. That is the extent of my analysis on movement.
Just a note on Fans.
- The Pink Arrow show some examples of how price respects lines/levels and how much they respect them when you place a Fan there and just let it sit for the duration of the trading area within it. It’s pretty fascinating and I think more people should try it out.
Case for bears.
- I see the possibility of some further downside if the number 1 area is rejected, we probably see some nice downward movement back to the 0 Fib line.