THE CALCULATED DOWNSIDE TARGET OF THE COMPLEX HEAD AND SHOULDERS TOP PATTERN IS ALMOST AT 3400, BUT ACCORDING TO (EWP) IT IS LIKELY THAT LEVEL IS DARD TO STOP THE STEEP SELL-OFF, WE HAVE A CLUES THAT THE DECLINE STILL HAS MUCH TO GO DOWN , THE VERTICAL DECLINE AND THE ACCELERATION GAP TELL US THAT THE THIRD WAVE OF WAVE( C) IS UNDERWAY(THESE CLUES ARE CHARACTERISTICS OF THE THIRD WAVE) AND COULD COMPLETE AT LEAST AT 2900, THEN PULLBACK TO UPSIDE ROUGHLY TO 3400 TNEN ONE MORE PUSH DOWN IN RANGE OF 2700-2800 TO END THE CORRECTION( INTERMEDIATE WAVE TWO OF PRIMARY FIFTH WAVE)
THIS IS WHAT I ANTICIPATE AS A PRIMARY SCENARIO IN (EWP)
THIS SCENARIO IS NEGATED WHEN PRICE CLOSES BELOW 2200 (MARCH 2020 LOW)
NOTES
REMMBER, ALL THESE NOTES FOR EDUCATIONAL PURPOSE ONLY, SO U CAN IGNORE THEM IF U LIKE
- THE CLEAN FIVE WAVES DOWN SUGGEST THAT THE UPTREND MAY HAVE CHANGED
IN CLASSICAL ANALYSIS CLOSE BELOW 4100 UPTREND CHANGED IN MEDIUM TERM THIS BOLSTERS THE EWP VIEW,
- S&P 500 TUMBLES INTO BEAR MARKET BELOW 3850 (THE INDEX HAS NOW FALLEN MORE THAN 22% FROM ITS RECORD HIGH AT 4818 MEETING THE TECHNICAL DEFINITION OF A BEAR MARKET)
- THE NEXT SOLID SUPPORT IS THE 3500-3600 RANGE, IF U DIDN‘T CUT UR LOSS AT 4500 OR 4100
- WE USE 4100(LOWEST TROUGH PRICE) AS THE BREAKOUT POINT IN HEAD AND SHOULDERS PATTERN INSTEAD OF A STEEP OR DOWN SLOPING NECKLINE, BEAR IN MIND THE MEASURE RULE IN THAT CASE AS IT IN ANORMAL MANNER,ONLY THE DIFFERENCE, THAT SUBTRACT THE RESULT FROM THE LOWEST TROUGH (4100 HERE) AS A NEW DOWNWARD BREAKOUT AND IT ALSO CONFIRMS THE CHART PATTERN AS BEING A VALID HEAD AND SHOULDERS, BUT IF UR A SLIGHTLY MORE CONSERVATIVE, COMPUTE THE FORMATION HEIGHT FROM THE HIGHEST HIGH TO THE HIGHER OF THE NECLINE TROUGHS(4279 HERE) THEN SUTRACT THE RESULT FROM THE HIGHER OF THE NECKLINE TROUGHS AND THE RESULT IS THE TARGET PRICE, SO IN THAT CASE THE NEW DOWWARD TRAGET IS AROUND 3600
