Today we will take a look at Square Inc. Jack Dorsey's company. In case you don't know who Jack Dorsey is, he is the founder of Twitter inc. In case you don't know what Twitter is... (I'm just joking)
Let's go back to Technical Analysis:
I can see two clear structures here:
*The previous impulse (which is a sequence of higher highs and higher lows) + The current major correction is a sequence of movements inside a constrained range. Ok, what is so special about that? Using Elliott Wave Theory, we can see the relationships between these two movements; one is a correction of the other one. And what Elliott concluded is that the next bullish impulse (IF it comes) will have kind of a relationship in terms of proportions with the previous impulse. That's why we use Fibonacci Extensions to define targets. Key Take away of this bullet point: The targets for a possible bullish movement are: 350 / 400 / 440
*Now let's take a look into the current major correction: After 170 days below the previous high, we saw the breakout in August, after that the price has been correcting on edge (which is pretty standard, after the breakout of structures of this size) This minor correction has been on its range for almost 80 days.
*Conclusions: IF (capital letters, conditional sentence) the price makes a new ATH, we will consider that as an activation level for the bullish view. Targets are the levels we mentioned before. Invalidation level will be below the minor correction at 218.00/ IF not the analysis is not valid (that simple)
*The expected duration for a movement like this can go between 100 to 150 days
Thanks for reading guys! Remember to add any ideas or thoughts to the comment. Protect your capital!!!
Let's go back to Technical Analysis:
I can see two clear structures here:
*The previous impulse (which is a sequence of higher highs and higher lows) + The current major correction is a sequence of movements inside a constrained range. Ok, what is so special about that? Using Elliott Wave Theory, we can see the relationships between these two movements; one is a correction of the other one. And what Elliott concluded is that the next bullish impulse (IF it comes) will have kind of a relationship in terms of proportions with the previous impulse. That's why we use Fibonacci Extensions to define targets. Key Take away of this bullet point: The targets for a possible bullish movement are: 350 / 400 / 440
*Now let's take a look into the current major correction: After 170 days below the previous high, we saw the breakout in August, after that the price has been correcting on edge (which is pretty standard, after the breakout of structures of this size) This minor correction has been on its range for almost 80 days.
*Conclusions: IF (capital letters, conditional sentence) the price makes a new ATH, we will consider that as an activation level for the bullish view. Targets are the levels we mentioned before. Invalidation level will be below the minor correction at 218.00/ IF not the analysis is not valid (that simple)
*The expected duration for a movement like this can go between 100 to 150 days
Thanks for reading guys! Remember to add any ideas or thoughts to the comment. Protect your capital!!!