If you get any meaning from charts
and study chart patterns, today's giant price dump was a big event that disrupted the 'normal' track pattern picture. for one day, when it moves a full pullback distance that should take 2 weeks time.
The swing pattern,which is a good picture to look at, is showing a "bottom zone" at 7 dollars and a top zone around 13.00 (7.20 to 13.20, same thing. ) How many weeks passed to create this swing wave pattern? This is the central pattern in the current picture. 13 down to 7 and back up to 13. I'm not looking at 30 dollars down to 7 or 28/25/23/20/18 down to 7, just looking at 13 to 7 to 13.
The latest major rally wave that went from 7 to 13, has a 50% Fib retrace target area around 10.00-10.20. This is a normal pullback target. Its to be anticipated. Its not a crisis to see a pullback reach that target zone. BUT, when it happens in one day, it looks like a panic sell crisis. IF we saw ,a gradual pullback downwave that took 2 weeks to pullback to this 10 dollar target, we wouldnt be too shocked, because this is right where the 50% Fib target is.
So with today's fast furious plunge, I want to try and let the rest of the week play out and see if the price might bounce back up to retest the 12 dollar area. Thats all I'm looking for now. The time frame has been disrupted. It may need a week to recover,and another week to stabilize and then lets see if it reaches 12 dollar area and recovers from this giant drop to regain the track pattern. It could be a track pattern down to test 10 dollar area. Today it went there in one day. 2 weeks time has become distorted now. Price action needs to pass Time to reconnect to the 'normal' pattern.
