60min 1050am
Watching corrective pattern to see how it will unfold.
Several possibilities exist. A move back to yellow highlighted area (previous pattern lows) is likely. Watching for potential head and shoulders pattern with the neckline the grey channel bottom the market is currently in. IF this develops then a spike through previous lows is possible - watching to see if second shoulder takes shape.
Thinking is we are looking for another down, 3rd wave C of some kind of ABC pattern at this point.
IF previous highs are broken, then we are likely to see more lift.
240
Blue dashed Fib levels currently contain sideways consolidation. Breaking above or below these would have us looking to the next Fib levels. Market has found support along the 13ma; potential to drop to 34ma which is currently in line with previous low bars close.
Note if the 34ma and previous lows were to fail, then we would be looking toward the pink LBB which is lining up nicely with a red Fib retracement.
Daily
We set the current dominate Fib rations (blue & red) of the last highs and they appear to fit well which gives us some confidence it is correct, even though we don't know with any certainty if the high for the current lift is in yet or not. Fibs throughout are respected nicely and even if it isn't the high we can continue to use them as a guide.
Expect any lift or drop out of the current sideways consolidation between the blue Fibs to potentially move to the next Fib level.
Note channel for the current lift and the 13ma. A retrace to the 34ma is also technically possible before more lift. A lot to move through first - but a technical possibility.
Weekly
Watching for a break above the 34ma. Potential for extreme lift if this occurs. Positive pressure is strong through indicators.
Also keep an eye on the potential pullback, although the bias is for more lift and a break of the 34ma, a pullback to the 13ma FIRST would be normal market movement.
