keep going with 38K pullback

21. Apr. 2022

Morning folks,

So, this is mostly the update to the previous idea, as market confirms our plan and is forming reverse H&S pattern around 4H 5/8 Fib support. The butterfly that we've discussed last time, has become the part of the H&S, as we've suggested. Thus, market finally gives the pattern that bulls could follow. This is at least something.

Personally I like extended pattern and better to stick with H&S and will be waiting for the drop to 5/8 support and right arm's bottom. Just because it gives best risk/reward combination and least risk. At the same time market is forming multiple patterns on 4H chart, that could trigger immediate upward action. That's why the possible compromise is to take small position now and add the bulk in a case of our primary scenario with H&S.

H&S failure suggests downside continuation and the end of the upside bounce. H&S target is AB-CD based on the head and the shoulder. Now it seems it stands around next resistance area around 44K