December Monthly Template Gameplan Reversal PatternLooking at the weekly chart, a very key reversal signal is forming. After the breakout in August, the market has performed three pauses and now we are on push 2 of the 1 2 3 engulfment pattern. This leads me to believe that the first week of December will be the 3 of the 1 2 3 pushes. If this is the case, then the second week should either be a doji or the confirmation engulfment. The measured move of the first leg takes price up to 45,760. Like I said in a prior post, the election weekly candle is the largest candle on the chart, and it takes place at the highs, a key indicator of an exhaustion candle. The only way to confirm this is with the engulfment candle.
On the 8 Hour chart for more detail
I believe the price action I have highlighted in the red box is just the miniature version of the same pattern that is playing out on the weekly. This leads me to believe that a large correction is coming, and price will return back to 38,500
My upcoming weekly gameplan for intraday is to use that pin hammer on Tuesday, November 26th as major support area. It depends on how price opens up and trades on Monday. Do they go down first? Because this week is NFP on Friday, this is a weekly candle with major red news.
