Scenario #1: this flag breaks and lands us right near the February bottom of ~$5800. This would also be the bottom of the megaphone shaped descending right angled . It is typically recommended to play these patterns at the third bottom touch and seeing that it is also the $5800 area bottom, we might see a lot of activity in this area and is a strong buy recommendation with a stop just below the bottom of the megaphone. If it bounces up here, then move your stop loss up below every MAJOR consolidation on the way up. I cannot definitively say anything about where a sell target is on this move so my best recommendation is to follow it because this might in fact be the bottom we are looking for. The IHS should terminate near the major that has contained the market since the all time high. We will likely be rejected at first and if you want to protect profits then take them at this and re-enter if we break through.
Scenario #2: flag breaks but IHS fails to form in which case, wherever we get rejected we would be headed to new lows where the next good buying opportunity would be near the support since February 24th. This would also complete the descending pattern forming since then and is also a strong buy opportunity with a stop not to far below that support because if we fail there then who know where we are headed. However, if we break back into the , then consider re-entering. I play conservatively and have no problem losing some potential profits on that.
Peace & Love,