PROBABILITY 2 - A POSSIBLE FORMATION OF THE DOUBLE TOP PATTERN WHICH IS A REVERSAL PATTERN WHICH SHIFTS THE MARKET FROM BEING BULLISH TO BEARISH. THIS IS POSSIBLE IF THE LAST HIGH HOLDS AS A STRONG RESISTANCE WITH ENOUGH MOMENTUM TO PUSH THE PRICE LOWER.
PROBABILITY 1 - PRICE GAVE US AN IMPULSE AS SHOWN BY THE GREEN ARROW . A PULLBACK AFTER THE IMPULSE CAME TO REST IN BETWEEN THE FIBONACI RATIOS O.382 AND 0.5 WHICH IS A STRONG REJECTION ZONE ALSO KNOWN AS THE GOLDEN ZONE. FOR TURN AROUND POINTS WE WILL USE THE THE FIB EXTENSIONS -0.27 AND -0.618 AS THESE ARE NEW HIGHS WE DO NOT HAVE REFERENCE TO OUR LEFT . WE...
NEW MONTH NEW PRICES AS PRICE MANAGED TO BREAK THROUGH ALL THE DAILY RESISTANCE ZONES . THE MARKET IS SHOWING POSITIVES KICKS AS THIS IS THE NEW MONTH AFTER PRESIDENT OF THE USA BIDEN WON THE ELECTIONS.
ON A DAILY PERSPECTIVE US30 PRICE IS MOVING UP COLLECTIVELY RESPECTING THE LOWER AND THE UPPER TREND-LINE OF THE RANGE. CURRENTLY PRICE IS AT A DAILY RESISTANCE LEVEL WHICH IS IN CONFLUENCE WITH THE UPPER TREND-LINE OF THE UPWARD MOVING CHANNEL. THERE IS A HIGH PROBABILITY THAT THE MARKET MIGHT GIVE US A DOUBLE TOP FORMATION WHICH IS A REVERSAL PATTERN THAT...
SECOND PROBABILITY IS THAT PRICE FAILS TO PUSH THROUGH DAILY RESISTANCE, PUSHES DOWN FINDING ENOUGH MOMENTUM TO PUSH THROUGH THE INTRADAY TRENDLINE , COMES BACK TO RETEST MIDLEVEL SUPPORT 3 AND CONTINUES TO GO DOWN AS ILLUSTRATED BY THE ARROWS.
DROPPING DOWN TO A LOWER TIMEFRAME OUR FIRST PROBABILITY IS THAT PRICE PULLS BACK TO MIDSUPPORT LEVEL 3 WHICH IS IN CONFLUENCE WITH FIB LEVELS 0.5 AND 0.382 , WE EXEPECT IT TO PUSH UP AS ILLUSTATED BY THE ARROWS ON THE CHART.
