Scenario 1 - Biggest thing to note is the cup and handle playing out on the larger timeframe.
This is a more likely scenario bc it could utilize the .382 retracement.
Although historically an ultimate rejection and retracement after a huge bull run gave us the .75 retrace.
This would be scenario 2, a retrace to the blue fan line. This is an ultimate reversal indication.
The green arrow is not drawn in time scale. This is the handle of the cup (possibly) in scenario 1.
A retrace to the .75 would be a possible buy zone to me unless the reason for retrace was extreme bad news for the company
and it was obvious capitulation. In scenario 2 a bounce off the lower 30s with confirmation would be a possible buy zone as well.
Or scenario 3 this thing just rips and rips. If that then I scratch all this and move on for now. Please critique me!
This is a more likely scenario bc it could utilize the .382 retracement.
Although historically an ultimate rejection and retracement after a huge bull run gave us the .75 retrace.
This would be scenario 2, a retrace to the blue fan line. This is an ultimate reversal indication.
The green arrow is not drawn in time scale. This is the handle of the cup (possibly) in scenario 1.
A retrace to the .75 would be a possible buy zone to me unless the reason for retrace was extreme bad news for the company
and it was obvious capitulation. In scenario 2 a bounce off the lower 30s with confirmation would be a possible buy zone as well.
Or scenario 3 this thing just rips and rips. If that then I scratch all this and move on for now. Please critique me!