Price is currently pulled back to the 38.2 fib retracement level of the overall bullish move. Price is also sitting at a support zone (blue box) and recently broke through an accelerated trend line. We may look for a slight bounce off this zone and retest the broken trend line. This pull back would line up with a 38.2% retracement of the most recent bearish move.
This pull back to the 38.2 level would complete a weekly head & shoulder pattern. There is also some divergence on the momentum indicator....indicating an upcoming shift in price towards the down side.
Entry would be on a pull back to form the peak of the right shoulder and we would target the primary fib extension levels which align with our base trend line.
This pull back to the 38.2 level would complete a weekly head & shoulder pattern. There is also some divergence on the momentum indicator....indicating an upcoming shift in price towards the down side.
Entry would be on a pull back to form the peak of the right shoulder and we would target the primary fib extension levels which align with our base trend line.