2 Patterns from 17k

2018年4月21日

We are only two successful patterns from 17k!!

In the next week:
First, I expect a rejection to retest today's log breakout:

9000 is a strong resistance for 3 reasons:
- Round number effect
- Fib 0.5 will encourage shorts
- On level of March 22nd high.

There were very strong bullish signs in the last week, and we can expect a battle for control at 7800-8000.

In the coming 2-3 weeks:
Obviously nobody knows where the market is going but sentiment is that the bulls are clawing back control. I am inclined to say we are heading towards the formation of an IH&S, once again retesting 9000.

If this formation is successful we can expect to revisit 11400, forming an Adam & Eve pattern from this entire year's action. There will be a lot of sideways action around key resistances but the confirmation of today's log breakout will embolden bulls and intimidate bears.

In the next month:
As price continues to rise and bears adjust to the prospect of an incoming bull market we will see greater momentum. If the A&E is a success we can expect 17000+.

Disclaimer
From Bulkowski's Encyclopaedia of Chart Patterns, the IH&S would have a 74% chance of success and the A&E 66%. Combined, we have a 50% chance of reaching here IF the price rebounds from the log support. I am not making any buy/sell recommendations, but I will be following this as a basic plan. Play carefully until the formation of the H&S, and place conservative stops before each point of interest. Always wait for pattern confirmations and it's always better to take no action than to place a trade if you're not certain.

We are only two patterns away from success, let that sink in!

Any suggestions or commentary are welcome! You might save me some money. Cheers!