As a follow up to my last post, if this is, in fact, a bearish wedge having broken down and being in the process of capitulating now, where could we end up?
A couple of ideas. The two green support lines represent a great area of consolidation that occurred in 2015-2016. There is a great deal of trading volume in that area. It was the top of that trading range that halted the slide in March.
Furthermore, if you draw a trend line from the February high to the recent high, and then produce a parallel line that touches the March low, you will get a channel (grey). That looks like a good place for the market to head.
A couple of ideas. The two green support lines represent a great area of consolidation that occurred in 2015-2016. There is a great deal of trading volume in that area. It was the top of that trading range that halted the slide in March.
Furthermore, if you draw a trend line from the February high to the recent high, and then produce a parallel line that touches the March low, you will get a channel (grey). That looks like a good place for the market to head.