Still Looking for a Pop

ES Appears to Be Forming a Rising Megaphone (Red) and Should Be About to Take Off In Its Biggest, Fastest Wave Up

ES Appears to Be Forming a Rising Megaphone (Red) and Should Be About to Take Off In Its Biggest, Fastest Wave Up

ES appears to be forming a rising megaphone, which makes it likely it’s about to move into a pop through the top of its blue flat-topped megaphone as we head into Labor Day weekend.

The little red rising megaphone should top with a small H&S, and that should mark the top of the head of a larger H&S before a move down to retest the January and February lows.

Get Ready for a Prolonged Sideways Move

Get Ready for a Prolonged Sideways Move

If the red rising megaphone fails to top with a proper H&S inside the formation, I’ll be posting a slightly different and more time consuming topping scenario.

ES Morphed Its Flat-Topped Triangle into a Flat-Topped Megaphone

ES is Trying to Draw a Flat-Topped Megaphone on the Chart for a Final Pop

ES is Trying to Draw a Flat-Topped Megaphone on the Chart for a Final Pop

ES has morphed its potential flat-topped triangle into a flat-topped megaphone (red on chart).

The megaphone could break out downwards to 2125 before heading up to a new high.  Or it could head straight up into a breakout through the flat top.  Or it could move back to the top, put in one more lower low for the formation, and then break out to a new high.

ES is working on a head and shoulders top before a plunge to the bottom of the navy blue megaphone and a retest of the January and February lows.

Gold is Back at Neckline

Gold is Back at its Inverse H&S Neckline (Red)

Gold is Back at its Inverse H&S Neckline (Red)

Gold is back at the neckline (red) of what was probably a fake inverse head and shoulders.  Once it breaks through that neckline it must retest at least the orange megaphone VWAP.

A fast reversal there would set up a larger potential inverse H&S (purple scenario).  Gold could also plunge right through that level all the way to the blue megaphone bottom (green scenario).

Gold could also get bogged down megaphoning across the blue megaphone VWAP (pink scenario), working its way to a retest of both the low and wherever the high is here before the breakout through the red neckline.  The pink scenario would usually ultimately form a triangle before a new low.

On the chart, I’ve drawn a bounce off the red neckline to retest the high before the break through the red neckline.  That bounce could still put in a new high that would likely pierce the blue megaphone top by a small amount.  A new high would put a rising wedge top on the chart.

 

ES is Still Working on a Flat-Topped Triangle

ES Likely Flat-Topped Triangle (Red) within Megaphone (Bright Blue) on Top of Navy Blue Megaphone

ES Likely Flat-Topped Triangle (Red) within Megaphone (Bright Blue) on Top of Navy Blue Megaphone

ES is still working on a likely flat-topped triangle (red) before a surge to the top of the bright blue megaphone.

This is part of working on the head of a H&S top on the navy blue megaphone. You see a lot of flat-topped triangles in this spot.

The head of the H&S should complete with a small H&S top of its own.

ES Flat-Topped Triangle vs Flat-Topped Megaphone

ES is Retesting the Bottom of its Potential Flat-Topped Triangle - If It Gets Thru It, It's Likely Forming a Flat-Topped Megaphone

ES is Retesting the Bottom of its Potential Flat-Topped Triangle – If It Gets Thru It, It’s Likely Forming a Flat-Topped Megaphone

ES failed to take out its August 17 low yesterday, setting up a potential flat-topped triangle. It’s retesting the bottom of that potential triangle now.

If it takes out the August 17 low while it’s down here, it’s likely forming a flat-topped megaphone.

Either way it’s likely to break out through that flat top eventually into a pop to roughly 25 points higher to complete the head of a head and shoulders top before a big move down.

TWTR Breakout Attempt in House of Cards Set-Up

TWTR has Broken Through the Neckline of its Topmost Flat Bottomed Megaphone (Navy Blue)

TWTR has Broken Through the Neckline of its Topmost Flat Bottomed Megaphone (Navy Blue)

TWTR has broken through the neckline of its uppermost flat-bottomed megaphone (navy blue on chart).  It seems to be forming a little triangle consolidation directly below the neckline.

If TWTR recrosses that neckline by anything more than a quick feeler, it’s going for another local high (pink scenario).  If it breaks out downwards from this little consolidation below the neckline, it should collapse through the necklines of a series of flat-bottomed megaphones to at least the red megaphone neckline at 15.44.

This type of set-up often leads to a price collapse, like the collapse of a house of cards.

A breakout through the red megaphone neckline targets roughly 10.00 if TWTR breaks down from here.  If the pink scenario to another new high plays out, the target would be a bit lower.

ES Potential Flat-Topped Triangle vs Rising Wedge

ES Potential Flat-Topped Triangle Before Another Pop

ES Potential Flat-Topped Triangle Before Another Pop

ES is banging its head against roughly 2191 as it continues to work its way up in the head of a head and shoulders top before a big move down.

It may be forming a flat-topped triangle before another pop, or it could form a series of megaphone tops on megaphone tops until a rising wedge completes and breaks out downwards.

Get Ready for a Prolonged Sideways Move

Get Ready for a Prolonged Sideways Move

Once ES tops, it is likely to return to roughly the level of its January and February lows before another new high.

Gold Approaching Head and Shoulders Neckline

Gold is Approaching Its Head and Shoulders Neckline

Gold is Approaching Its Head and Shoulders Neckline (Red)

Gold is approaching its head and shoulders neckline or potential triangle bottom (red).

It could bounce off that neckline to complete a triangle before one final pop to 1400 (purple scenario).  Or it could just break out downwards through it in a quick collapse to 1200 (pink scenario).

Gold Inverse H&S vs Triangle on the Daily Chart

Gold Inverse H&S vs Triangle on the Daily Chart

Or it could continue to triangle (green scenario in top chart) to put a right shoulder triangle on the H&S.  That would almost always mean a breakout downwards.

Once gold breaks out through that red H&S neckline in any of the scenarios, the minimum target is 1200. Gold could form a fast bottom there to put a right shoulder on a big inverse H&S on the daily chart (orange scenario above).

Or gold could start megaphoning across 1200 and just keep adding megaphones inside megaphones to form a giant triangle on the daily. That triangle could break out in either direction but would be roughly a 60-65% favorite to break out downwards to 700ish.

Gold Could Also Plunge Through 1200 to its Blue Megaphone Bottom

Gold Could Also Plunge Through 1200 to its Blue Megaphone Bottom

Gold could also plunge right through 1200 to the bottom of the big blue megaphone on the daily, or plunge through after a bounce there.

The longer gold spends topping up here, either with a pop to 1400 to form a bigger H&S, or with a triangle right shoulder on the existing H&S, the more likely the next move will be to the blue megaphone bottom.

A plunge right here through the red H&S neckline would be more likely to reverse at 1200 or get bogged down there in a series of megaphones inside megaphones.