Weak rally past 4000 before breaking support into mid 2000
Updated
A channel has been created since the last significant drop down, and is meeting resistance at 4000. This has been tested twice, with higher lows on each drop. I expect 4000 to be broken on the next test, but I do not think there will be enough strength to push significantly higher than ~4200, failing to reach a 1.618 extension at 4700.
In this case, the pennant will be completed on the weekly chart, suggesting another leg down in to mid-low 2000 (~40%-50% drop similar to 6000 -> 3500) Timing seems to be mid late April.
Strategy is to play the long for now, with targets at 4000, 4200, and start to short if the impulse up starts to lose momentum in the low 4000 range.
In this case, the pennant will be completed on the weekly chart, suggesting another leg down in to mid-low 2000 (~40%-50% drop similar to 6000 -> 3500) Timing seems to be mid late April.
Strategy is to play the long for now, with targets at 4000, 4200, and start to short if the impulse up starts to lose momentum in the low 4000 range.
Trade active
Continue to go long in the short term, to finish the pennant around 4200-4500.buy the pull backs all the way up to 4200, and see how far it goes, with 40% take profit target at 4500. if it starts to ascending wedge, and we see weakness at 4500-4600, then close the long position or trailing stop to take profit.
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