Now to the charts. After reviewing last week's action, here's what I have.
1. Drawing a support line from the lows of the past few months and then creating a parallel line to form the upper channel off of the high lets us see that price is nearing a very important area. If this channel is not going to hold, I would expect price to bust through this based on the hourly EW counts.
2. Here is the hourly chart with a bullish count. The three dotted lines on the chart are a regression channel with the solid line showing an extension of the channel into Friday's low. Currently the regression channel will break down with a price move below Friday's low, so it is important that price move up now for a bullish scenario. Today should be a breakout day (gap up and go) if this is the count. Price needs to get above last week's high and give a solid break out from here. Price target of a break out from here is a new rally high (above April's high).
3. On the other hand I have been charting that the top is in that we are in minor wave 2. This area is a perfect place for minor wave 2 to end, so a gap up that fails to accelerate is a perfect low risk / high reward bearish trade. Let's see if it comes this morning (go short after the first 15 min if it is a down candle with a stop 1 pt above the bar).
Best of luck!
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