Using the Dec high down to the first big sell off low as our AB line, of we get an AB=CD pattern here, that will put the low for this leg in the $400-$450 range.
This is actually a pretty good level as you see can back in Nov, it was a resistance and support level (red and green arrows).
The first test we need to get through is the support level established on Dec 7th which marked the short term low before the rebound.
If buyers are still interested at the price, we should see some interest in the $600 range.
If there are not buyers to absorb sellers at that level (no sideways action), then I would expect to see the lower targets.
https://www.tradingview.com/x/xnLociTG/Q&A:
- WTF is this?
This is called technical analysis, google it.
- What are those lines?
Fibonacci levels, google it.
- What is AB=CD?
Related to fibonacci
- Should I bet all my money on this analysis?
No, this is not a crystal ball that tells you what will happen, its a guide that helps traders identify levels that they may trade upon.
