ONE44 Analytics where the analysis is concise and to the point
Just to review the 1410.00 to 1436.00 area was first 61.8% back to the all-time high and secondly a major Gann square. The break from this area held above the 1292.00 major Gann square and 1285.00, this is 23.6% of the current rally, keeping the market extremely strong.
They now have one close above 1410.00, however they need to also close above 1436.00 to give us the next target of 1585.00, this splits 78.6% back to the ATH and a major Gann square.
Once they can get a solid close above 1436.00 it will become the swing point. There is one other major Gann square to watch for resistance at 1512.00.
"The one thing you don't want to see if you want the market to go higher, is they trade above 1436.00 and then close below 1410.00, this can cause a sharp setback and since they have already reacted to the 23.6% level the target on any break from this area would be 38.2% of the move up at 1188.00. This is also our long term swing point that needs to hold to keep the idea of a multi year rally that we have had since the fall of last year intact."
The "ONE THING" is exactly what happened!
The longer term target on a break from here is the long term swing point of 1190.00, this is 38.2% of the current rally, as we mentioned. As always we will watch all the retracements on a setback from here, so watch the 23.6% level at 1288.00, this is also a major Gann square, it was the base of the last rally and can be again.
Any break from this level that can't get below the 1360.00 major Gann square keeps the long term trend very positive, however it will take a close above the 1436.00 major Gann square to bring back the long term target of 1585.00.
Our goal is to not only give you actionable information, but to help you understand why we think this is happening based on pure price analysis with Fibonacci retracements and Gann squares.
You can get all the rules and guidelines to the Fibonacci retracements on our website
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