The last time we chatted about the daily chart we were waiting for price action to form both a price fractal and "squat" bar with the 9/4 high. This has happened and our confidence can continue high in the contracting triangle scenario. Wave “D” is now unfolding in this wave pattern and Connie Brown (Technical Analysis for the Trading Professional) says “Wave D is not as tricky (compared to wave C) because it frequently forms a Fibonacci relationship relative to wave B.” We also know that Wave D can not exceed the end of Wave B and today’s chart shows all of these factors. Just as importantly, we should not exceed the end of the just completed Wave C, which gives us a bearish view here.
As we watch for the end of Wave D I will keep this in mind: The move down from July 16 – August 6 was 21 calendar days. Our triangle will reach 42 days if it ends next Monday. Now that would be a pretty symmetry! Ideal would be for Wave D to end this Thursday and E to complete early next Monday morning. But let's see what the market will give us.
No comments:
Post a Comment