CRSP - Crappy stock or Bullish Harmonic possibilities up?CRSP has been beaten up recently, yet the time for selling may be behind us now. Please look at the green long term channel that we are in now. Notice the green buy and sell signals indicated with the small ellipses.
Next lets take a look at the possible black up channel, that indicates a faster slope for us.
If we see price break higher as shown by the green arrow, at 53.90, then we know that the black channel is in play.
Next lets look at some of the harmonic patterns that may be in play.
First up is the Gartley pattern. We should see price reach the 78.6% retracement of the brutal sell off. Please see the red pattern. Typically after that area is reached, we expect a 38-62% pullback. However if the black channel is in place, I'd be thinking we would only get a small 38% pullback as shown by the pink "possible" trail drawn.
Next could be the Deep crab pattern as shown in purple. This uses the first 86% bounce of the brutal sell off as a measuring stick to indicate which pattern to look for, and the Deep Crab fits the bill nicely.
Next, let's take a big picture point of view and look at the whole sell off. Looking at the recent bounce to the ideal 61.8% zone (as shown with the green pattern) we can expect a nice long run to the 161.8% extension using the Crab pattern. .. Very nice....
So lets see if these harmonics give us a clue as to the possible turning points (based on price-not time) as each pattern completes, we can expect a pullback to shake out the traders that can't believe how good CRSP stock price is doing...
