On Oct 30, 2016, I wrote a TLT harmonic scenario. Currently price has reached extended double pattern completion target at 117 region. There are a couple of things to watch for in regards to the purpose of price getting to this target.
First of all price is in a downtrend, holding in Oversold region of momentum, and in world of harmonics price can breach below the ideal PRZ (Potential Reversal Zone aka completion zone for harmonic patterns) to test nearby important levels, like in this case a double bottom at 114.88. But for Retrace Mode, in this case that means upside move, ideally if that 114.88 is tested, it's a good sign if there's a swift bounce from that double bottom but most important once price can hold above 118.15 and momentum is pushing above that Oversold mark, the probability is strong for the Retrace Mode and the ideal minimum target is 127.04 which correlates with a Significant Level.
Sidenote, I consider all triangle points in a harmonic pattern as a Signficant Level.
Second of all was addressed in my First of all, but once price can hold above 118.15, the ideal scenario is for price to at least test that 127.04 target for a new harmonic pattern to emerge, so it has a purpose to get there in the world of harmonics.
Bottom line is this is a region that offers an opportunity for buyers to step in. Whether they do or whether they don't both tell a story.
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