My followers also know that i actually predicted the start of the reversal, because of a strange candle at the low. Just before that i turned from long to short around the 7600 because of a beautiful . There were some confusing signals at the low 7200/7400, but eventually i went long at 7410 after we made that low at 7220. I added again around 7600 because it was getting clear we would see a short covering rally.
I jumped out at 7970 thinking it would make a but we just kept on going. For now i will wait until we drop to 7800 levels and jump back in again (probably).
In the chart we see 2 options,
- we go directly through the neckline of that and go towards the 9600
- we drop to the 7800 and make a normal right shoulder and go up from there towards the 9400.
Those targets will probably not be seen, because the market is still way to weak, so big chance we see it turning around 9200. My overall bigger picture plan is still a big drop towards the 6K and 4K. I will be building up a big short position again between the 9K and 10K levels.
What gives me greater confidence, people here are starting to get again, and i know upfront that if we break the 9K we will see that even more, just like at the 11.600 :).
On this one we see, for this rally to stay in full force, we have to stay above that blue line you see in the update above. For this rally to stay strong, everything above that green area is also very bullish. If we drop below it, towards the 7800/7700 (max) i still see a wave up in the low 9K's. In summary, the stronger the move, the higher this rally will go!
This H&S is not a real one, some of you might think why i say levels that go through the neckline and breaking the pattern. First of all, it's an extremely ugly H&S (probably why i am the only one here on TV saying we have one). But like i have said many times before, TA is not looking at pictures, it's a story! H&S is making a higher low (right shoulder) and breaking a very big resistance where price got sold of several times (the neckline). The market doesn't see this H&S, so the neckline level is less significant.
One last thing for now, the 8700/8800 which was THE turning point last week, where i said very clearly several times that those levels were the key point for the market to go towards the 7500 and that the 8300 low would not even be the slightest support. We all saw what happened. Anyway, now we see again that this level is a big resistance so far, and it will not break easily.