Click here for IYR Openes Doors To Butterfly article.
IYR, the ETF for US Real Estate, Day chart shows price is currently attempting to retrace a Bullish Butterfly as shown in green, there was some folks that jumped on the buy wagon ahead of the ideal PRZ of 71.45 … Continue reading
Back at October 1, 2015, THEN IYR had completed a bullish pattern, called a Deep Crab, click here for that post. At that time, there was a puny attempt to retrace that bullish pattern. It's ideal minimum target was 74.11. A good rule of thumb for retracement targets are what I call the Gold Ratio Zone (GRZ), this is the area between 38.2% and 61.8% Fibonacci's.
NOW, the day chart shows that after the October 1st post, price did push through the 74.11 target but the gray zone reflects my GRZ top at 77.71 and that did hold price from retracing higher. Once price is inside the GRZ, where it breaks out is a directional bias clue, in this case, it hem hawed around but finally had conviction of breaking down the GRZ 74.11.
Currently price is in a retracement mode of smaller brown colored Butterfly & note that it is inside its GRZ retracement targets 70.14 and 72.78. Again, watch for price to break and hold beyond this GRZ for directional clues. A hold above 72.78 increases probability of testing 77.04 with scaling points at the blue colored levels. A rejection of 72.29 or more important hold below 70.14 has an ideal downside target at a zone that comprises of two separate harmonic pattern completion points, when this occurs it's called a double bullish PRZ (Potential Reversal Zone aka a harmonic pattern completion target zone) between 64.52 and 63.50. This double PRZ scenario behaves both as a magnet as well as a probable bounce point.
But first things first, which GRZ level can price take out with conviction.
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S&P500 Day chart shows price is snipping away between range bound levels. Ideally the bulls would love to see price hold above 2136.64 to increase the probability of upside continuation to ABCD targets. ABCD patterns are harmonic rotations derived from … Continue reading
IYR, the real estate sector ETF, is in a bouncing retracement mode after completing a bullish harmonic pattern. The Day chart shows the ideal minimum retracement target is 75.83 and the ideal target is 83.54 with scaling points or points … Continue reading