THE BIG PICTURE: Two levels are apparent after using the fib extension tool. The first is to measure segment A to B and forecast the 100% extension from point C to get the projected point D just beyond 121. Price is trading just beyond that level at the moment in what can be thought of as an overshoot of the level. Again price was able to penetrate the extension level at point D, but a failure to stay above that level introduces the likelihood of more downward momentum. The next level to watch if the market rolls over at point D is to measure segment B to C and project a move from point D to determine a major level to target.
THE TECHNICAL STANDPOINT: This idea is contingent on a failure at point D along with developing lower highs and lower lows on the lower time frames. With that in mind, switch to the daily chart and watch for a swing high to develop.
THE TECHNICAL STANDPOINT: This idea is contingent on a failure at point D along with developing lower highs and lower lows on the lower time frames. With that in mind, switch to the daily chart and watch for a swing high to develop.
