The markets saw an automatic rally bounce off the lows from all the panic selling caused by the COVID-19 issues impacting the world & shutting down the economy.
I was targeting a bullish bounce of around 50% which would have taken price to the $265 range. The highs hit $262.80 before Friday's inside day candle. Japanese candlestick analysis would label Friday's candle as a high-wave candle which is a sign of indecision in the market, the price can go either way from here. If you take Friday's candle within the context of Thursday's price action then it would be considered a harami which is a reversal signal. The blue line denotes the 20-EMA line which may be providing resistance as well.
At this point, I am looking to see where the price moves from here. I am expecting a further breakdown in price as the market re-tests its recent lows. My initial price target is the previous gap price of the $229.60 level. After that, I am targeting the prior low of $218.26. This expectation gets negated if we can see the price continue rising above the 50% Fibonacci level & the 20-EMA line.
I was targeting a bullish bounce of around 50% which would have taken price to the $265 range. The highs hit $262.80 before Friday's inside day candle. Japanese candlestick analysis would label Friday's candle as a high-wave candle which is a sign of indecision in the market, the price can go either way from here. If you take Friday's candle within the context of Thursday's price action then it would be considered a harami which is a reversal signal. The blue line denotes the 20-EMA line which may be providing resistance as well.
At this point, I am looking to see where the price moves from here. I am expecting a further breakdown in price as the market re-tests its recent lows. My initial price target is the previous gap price of the $229.60 level. After that, I am targeting the prior low of $218.26. This expectation gets negated if we can see the price continue rising above the 50% Fibonacci level & the 20-EMA line.