Where we left off Wed morning:
60min
Large move down occurs, continuing the larger pattern (purple expanding wedge on 240)
Resistance should be watched for - multiple fib levels can be seen around current market levels. Recent drop needs a correction - inside black channel at the minimum, potentially lifting outside to retrace the larger down.
Yellow box identifies the distance of the last wave down, watching for some guidance as as to when to expect reversal here.
240
We can see the larger pattern has continued. Expect consolidation / retrace at purple Fib levels. Potential to see a lift back to retest previous significant technicals that were broken on the way down. Ie. purple s/r zone. Wedge patter resistance could be met again.
Failing to find support for a consolidation or retrace, we would be looking to the next lower purple dashed Fib level - which is also previous lows of the larger pattern.
THUR 20th 7:40am
60min
Market found support from the black 1.5 Fib extension and lower Bollinger bands (LBB). Retrace lifts and touches the left of a HPTZ; moving back to retest the purple s/r zone at another target. Market could lift as high as pattern resistance - watching for indications for another down.
IF we see a break above larger purple wedge pattern, and support from it, then we should be starting to look at the potential the market is shifting.
IF resistances hold, then we could see another dump (once consolidation is complete) back to lows on the 240.
