Last week we noted the completion of Wave 5 down corrective pattern concluding at 1600 handle followed by a rally taking price back to prior pivot high at 1645. Yesterday’s pullback to 1622.00 handle (Note: projected target was 1623-25 where we had anticipated a reversal) measured approximately 50% pullback from recent low and qualified as “First Pullback”.
Today there are decent odds (83%) of having a rally greater than 10 handles (currently pre-mkt +9.5) and (55%) greater than 20 handles based upon the 3-Day Bullish Cycle. We’ll be looking for any pullback to 1630 handle to offer some responsive support, with critical support down at 1621 – 23 zone.
Price has potential to reach 1639 – 45 zone providing bulls can make a charge…There is an outside chance any strong rally can reach up to 1650 – 56 zone.
Downside violation of Prior Day Low (PDL) at 1621.50 suggests an accelerated long liquidation down to 1610 handle and possibly 1600 retest…Which would be most unfortunate for the bulls.
There is a wide range of price points that can be tagged given this week is Contract Rollover…always a fun time.
Stay nimble and flexible.
I am disciplined. I behave in a way to reach my goals. I do what I intend to do. I have the intent to win through right actions. I will be patient for patterns to emerge and mature. I am decisive. I decide easily and act promptly. I act in the right way and right on time. When there is nothing to be done, I will wait.