Retracement trading routine.

May 11, 2020

Morning folks,

As our bullish trade is over due completion of AB=CD 10K target - this gives us "222" Sell pattern on daily that suggests at least 30% pullback to
~7.7K. Thus, our first target is K-support area of 7.7-7.85K on daily chart.

Downside action is taking the shape of H&S pattern as we've said on Friday (or Thu... don't remember exactly). Thus, for bulls - nothing to do but wait for 7.7K support, or, who knows - H&S failure and rally through 10.2K level. IN this case you could use Stop "Buy" order above this level. As now chances for rally are phantom, let's focus on first, more probable scenario.

For the bears... consider 9.15-9.3K area for short entry. This is the level where the top of right arm should be formed. Now it seems that we have "222" Sell around 5/8 Fib resistance, also you could recognize puny reverse H&S here, right at the bottom. Both patterns have approximately the same target.

And keep an eye on halving that should happen within 9-10 hrs probably...