Correction before the run?
The neckline of the Head and Shoulders I talked about in the previous run has been compromised and volume has followed through.
At the time of writing, the 0.5 Fibonacci level has held but given the bearish divergence in the MACD (on higher timescale in particular) there is a higher likelihood of lower prices. This can be seen by the lower high of the current push to 350 compared to the previous push to 390.
What is critical, if this market is going to break out of the pennant which has been forming is to establish a new higher low and more importantly, not break the trendline as doing so would open up the possibility of lower prices.
In such a case, a double bottom at 200 or even 134 is possible.
At the time of writing, the 0.5 Fibonacci level has held but given the bearish divergence in the MACD (on higher timescale in particular) there is a higher likelihood of lower prices. This can be seen by the lower high of the current push to 350 compared to the previous push to 390.
What is critical, if this market is going to break out of the pennant which has been forming is to establish a new higher low and more importantly, not break the trendline as doing so would open up the possibility of lower prices.
In such a case, a double bottom at 200 or even 134 is possible.
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