On daily charts, we see an overwhelmingly bearish trend. This lends oneself to seek ways to get involved in the down move. A short sell is possible at market right now come Monday morning. A bearish bat pattern completed recently just below a daily structure level.
Putting the pieces together, we see a minor structure level near where the X leg formed. Both that and the daily structure will serve as the, "condom" in essence, should we become involved. An ABCD pattern completed in the neighborhood of the pattern completion. More conservative traders may wait for a double top to form with a little divergence to add to strength of signal.
Bat patterns offer great risk/reward, but trend continuation traders can also become involved. Should we blast above the daily structure level, it'll violate the most recent outside return on the bear trend out on the daily, which should herald the end of the downward move.
Benny Manieri
Putting the pieces together, we see a minor structure level near where the X leg formed. Both that and the daily structure will serve as the, "condom" in essence, should we become involved. An ABCD pattern completed in the neighborhood of the pattern completion. More conservative traders may wait for a double top to form with a little divergence to add to strength of signal.
Bat patterns offer great risk/reward, but trend continuation traders can also become involved. Should we blast above the daily structure level, it'll violate the most recent outside return on the bear trend out on the daily, which should herald the end of the downward move.
Benny Manieri