The idea is based on a few premises:
1. There's a bearish hammer/pin (shown in pink box),
2. Potential Head and Shoulders pattern completion,
3. Target could be set around $14000 as it is round figure + 50% Fibonacci retracement is around there.
You may also have $14500 as a target area as the 61.8% retracement also matches up.
In addition, despite the Fed's calling for a continued QE program for the time being, the equities, which should have gone higher, didn't really do much since Wednesday. Look for additional bearish momentum. Buy into a short equities ETF or take advantage with some put options if you prefer.
1. There's a bearish hammer/pin (shown in pink box),
2. Potential Head and Shoulders pattern completion,
3. Target could be set around $14000 as it is round figure + 50% Fibonacci retracement is around there.
You may also have $14500 as a target area as the 61.8% retracement also matches up.
In addition, despite the Fed's calling for a continued QE program for the time being, the equities, which should have gone higher, didn't really do much since Wednesday. Look for additional bearish momentum. Buy into a short equities ETF or take advantage with some put options if you prefer.