Price action is now in a formation. Typically rising breakdown. Can it break up? For sure. However it is improbable. Furthermore, look below at (circled in orange) now at 99 and on on a 10-day chart. Above 20 for 380 days! Look left, this rally is significantly overbought. There is no where left to go.
The question now is not will it go down or even when will it go down but rather how far will it go down?
“One thing experienced traders love about this pattern is that once the breakdown happens, the target is reached very quickly. Unlike other patterns, where a confirmation must be shown before a trade is taken, often do not need confirmations; they normally break and drop fast to their targets. Targets are usually located at the beginning of the upper trendline,”
If the above holds true we’ll see a correction of up to 46% – are you ready for that?!
What if the -46% does not hold support? Then a much deeper correction to 60% could occur. On the 2-month chart below there is significant support available from the 2007/8 highs where previous resistance has not yet been confirmed as support. This would be excellent structure for the market going forward were it to occur.
Action? A sell from 4500 is amazing if you can get it.