This could have been either a H&S or Inverted Cup & Handle.
Either way, confirmation of this pattern with a breakout below 59k could see a measured downside move to high 48's.
This matches up precisely with the 38.2% Fib from the JUL low, and would be a perfect re-test of the medium term trend & 2/1 Gann line. By the time it gets there, it will be a good bounce on the 200 EMA also.
All this coupled with yesterday's confirmation of Hidden Bearish Divergence on the monthly RSI points to a decent pull back end point.
The completion of a Minor wave 1 down would be confirmed by a strong bounce at this level. Further confirmation of a downside Minor 5 wave will be found at the possible top of wave 2, back up at resistance in the low-mid 60's.
If the downside pattern ends up being invalidated later on, this bounce point at 48-50 is still likely in the mean time.
We'll See.
Either way, confirmation of this pattern with a breakout below 59k could see a measured downside move to high 48's.
This matches up precisely with the 38.2% Fib from the JUL low, and would be a perfect re-test of the medium term trend & 2/1 Gann line. By the time it gets there, it will be a good bounce on the 200 EMA also.
All this coupled with yesterday's confirmation of Hidden Bearish Divergence on the monthly RSI points to a decent pull back end point.
The completion of a Minor wave 1 down would be confirmed by a strong bounce at this level. Further confirmation of a downside Minor 5 wave will be found at the possible top of wave 2, back up at resistance in the low-mid 60's.
If the downside pattern ends up being invalidated later on, this bounce point at 48-50 is still likely in the mean time.
We'll See.
