If you recall from my last post, I was covering the , which is defined by the top of the channel and the rising blue . You can see that it has recently been violated on several occasions. So, the has been heavily weakened as support, further increasing the likelihood of a completion of the right shoulder on the large formation.
You can see that I still have the downside projections up, which were generated with the size of the and the formation. Both of those projections indicate a severe breakdown, but I've realized that there is potentially an invisible in the way — the bottom of the . Now, I realize that you need at least two points of contact, preferably three, to form a good . However, this is the type of forward thinking that can really pay. With that said, there is a chance that IWM breaks down, but only to the bottom of what would form a perfect . Depending on how rapidly that occurred, that could put us in the 135-136 area. Regardless, the and the are projecting a breakdown below what would be the bottom of the . So, that level may or may not hold, but it is DEFINITELY something to be cognizant about. With that said, I expect further downside in this market, resulting in a completion of the formation. The 50 (in orange) should continue to act as overhead resistance.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! revoir! ;)
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
I really wanna know where u buy the puts/calls from and what they're called :))
I just wanna follow their course n how they move