Analysis is based primarily on Fibonacci levels, Wyckoff method, and market cycle psychology. I did a cursory check using Elliott Wave and, IMHO, I saw enough to corroboration with everything else to increase the warm and fuzzy feeling I get when thinking about how much $$ I’ve sunk into Hood below $10 price. However, I didn’t spend enough time on the EW to warrant showing it in the chart.
Red region: Previous market cycle except for depression area.
Teal region: Depression area of market cycle and Wyckoff Accumulation.
Descending Parallel lines: Made these to make the shape of the Accumulation phase in this chart easier for viewers to compare with the textbook shape of Accumulation.
Price action appears to be following a descending parallel Fib channel. I cloned the channel and placed the start of the 2nd channel at the point where I think Accumulation ended. However, theoretically, until price confirms a break above the descending parallel lines, it remains possible for price to plummet to the bottom of the descending parallel line channel. I find this highly unlikely but, hey, I don’t control the markets.
The reason for stacking the fib channels involves a synthesis of EW theory and market cycle psychology. It’s possible that the rally to $85 was part of a Wave 1 and that a Wave 2 ended somewhere in the red or teal regions.
For ppl who care about EW.
The majority of the time when applying EW, if EW is valid then Wave 3 tends to be between 1.6x to 2.6x the length of Wave 1. Wave 3 begins at the end of Wave 2. In the chart, a Wave 2 could have ended in the first Fib channel just above the .618 level, near the lowest price seen in chart) or the 1 fib level, at the end of the teal region where I think Accumulation likely ended. Therefore, if EW is valid, then a Wave 3 would likely end between the 1.236 and 2.382 levels of the 2nd fib channel.
Red region: Previous market cycle except for depression area.
Teal region: Depression area of market cycle and Wyckoff Accumulation.
Descending Parallel lines: Made these to make the shape of the Accumulation phase in this chart easier for viewers to compare with the textbook shape of Accumulation.
Price action appears to be following a descending parallel Fib channel. I cloned the channel and placed the start of the 2nd channel at the point where I think Accumulation ended. However, theoretically, until price confirms a break above the descending parallel lines, it remains possible for price to plummet to the bottom of the descending parallel line channel. I find this highly unlikely but, hey, I don’t control the markets.
The reason for stacking the fib channels involves a synthesis of EW theory and market cycle psychology. It’s possible that the rally to $85 was part of a Wave 1 and that a Wave 2 ended somewhere in the red or teal regions.
For ppl who care about EW.
The majority of the time when applying EW, if EW is valid then Wave 3 tends to be between 1.6x to 2.6x the length of Wave 1. Wave 3 begins at the end of Wave 2. In the chart, a Wave 2 could have ended in the first Fib channel just above the .618 level, near the lowest price seen in chart) or the 1 fib level, at the end of the teal region where I think Accumulation likely ended. Therefore, if EW is valid, then a Wave 3 would likely end between the 1.236 and 2.382 levels of the 2nd fib channel.
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The 8.24 to 8.4 range looks appetizing but it’s unnecessary. Let’s see how this shakes out.
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Huzzah!
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Chart remains sexy. Bulls, let’s hope price holds the line!