ButterflyBullish.
Butterflies are often found at tops and at bottoms.
The butterfly should terminate close to the 1.272 of XA. This one was a bit shy of the 1.272.
The 2nd leg, the retracement should be close to the .786 of XA.
Peak 2 is lower than peak 1. It is a crooked M.
There is no pocket pivot noted at this last leg yet price gapped up.
In a perfect world targets for this pattern would be a the white lines I drew.
I am not sure this is a perfect world though.
This broke down from a triangle and the bottom trendline of that triangle could act as resistance.
No recommendation.
The butterfly is an extension pattern and the final leg ends below X in the bullish version.
It is also considered a price exhaustion pattern.
Target 1 level can also cause some resistance and sometimes all you get is T1 )o:
Every stock is different just like everyday in this market can be different.
