Depending upon exactly how you draw the declining line connecting the previous two major price highs, we could ask the question: Are we there yet?
To recap, on 02 April the market penetrated the lower extreme of the channel for (only) the second time this year and this initiated another fast recovery with some signs of bullish divergence such as a higher low in the oscillators.
On the 06 April another flush downwards – a re-test of the lows – was bought strongly and the market has rapidly moved up through each level of price resistance since then.
On 10 April movement up above the S/T channel triggered a strong Buy Signal which is still active.
From a T Theory perspective, we can draw a T structure that projects the next price high. The left side of the 'T' starts at the tweezer tops on 12 and 13 March (where the most recent decline started from) and is centred at the low (where the decline end). The selling pressure during the decline is the fuel for the advance and produces a force that is equal in time – the right side of the 'T' – and therefore projects into 19 and 20 April. We do not know how high the force will drive the market but we know that the next highs(s) should be within the next two days.
Of course, there are additional declines that may produce further 'waves' and there is a double bottom structure emerging that could power the market higher, but what happens next will be critical.
Be prepared for whatever is coming next, and trade with confidence:
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Disclaimer: This is the diary of a personal trading system, its methodology and the signals that it is producing. You are welcome to follow along but please understand that the information presented here is for educational purposes only. No recommendations are being made to buy, or sell stocks, options or futures contracts. Please consult your own financial advisor before making any investment decisions.