As you can see, I've done a bit of hypothetical analysis here. I've drawn a proposed pattern, over the current price action. We don't actually have a right shoulder yet, but I think there is a high probability that one will be formed. Looking at the chart, you can see that there are several overhead resistance levels, which could easily act as resistance, turning price back to the downside to form the right shoulder. For now, I just wanted to illustrate the potential for a pattern to develop here, so that you are aware of the possibility. As I've stated, the right shoulder is hypothetical, and I've drawn a decently large area for the shoulder to form. A shoulder could fill the whole area, or it could fail at the 50 , and form a small shoulder right now. Regardless, a pattern here, would likely produce a test of the bottom of the pattern (blue dashes.) I've been calling for a test, and possibly a breakdown, of the pattern for weeks now. If the pattern holds true, it should produce a break to the downside. That's why I've highlighted the "huge failed breakout." It shows that an upside breakout was unsustainable, and the trumps the rest of the chart. Knowing that, in conjunction with the rest of the indications, it seems as though a test of the bottom of the is inevitable. For now, let's just watch to see if a pattern develops.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
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