Replies to post #319 on Direxion Daily Energy Bull 2X Shares (ERX)

[sharpshorts]

ERX buy?...No, not right now...

I meant that the bearish Head and Shoulders pattern is still in effect.
It's measured move target should be down around the $42 area...

That $42 target just happens to fall within the "Brach Zone fibonacci reversal area" which
is the 61.8 to 78.6% retrace of the bull run which ran from November 2011 to the top of
the H&S 'head' this past February...
I consider the BZ fibonacci area a potential trend reversal area -
in this case changing the trend from down to up.

Also taking shape right now is a 5 wave decending wedge pattern
which I generally consider to be a bullish pattern.
Price may stay within the wedge and print the 5th wave within the BZ reversal area...

So the idea is to look to go long after a lower low 5th wave leg of the decending wedge is printed, while
price is within the BZ area and after the H&S pattern has run it's course.