XLE Megaphones with Potential Melt-Up Set-Up

XLE has a Potential Sornette Melt-Up Set-Up on its 60-Minute Chart

XLE has a Potential Sornette Melt-Up Set-Up on its 60-Minute Chart

XLE has formed a beautiful megaphone inside a megaphone on its 60-minute chart.  Even better, XLE has formed a potential Sornette melt-up launch pattern across VWAP of the red megaphone.

An upwards breakout through the navy blue megaphone VWAP, typically with a double bobble as the orange megaphone fails to retrace to VWAP, would target the red and blue megaphone tops.  The move would usually be fast (green scenario).

The light blue scenario represents a series of megaphones inside megaphones across the navy megaphone VWAP.  We’d usually see this is a triangle right shoulder is forming on the potential inverse head and shoulders bottom on the daily chart (see below).

The purple scenario represents a top before a collapse back to the 2016 (see below).

 

XLE Inverse H&S Bottom with Right  Shoulder Triangle vs Neely Set-Up

XLE Inverse H&S Bottom with Right Shoulder Triangle vs Neely Set-Up

XLE formed a price channel on its move down from the June 2014 high to the January 2016 low.  That kind of move is a Neely set-up for a partial retrace then retest of the low before a melt-up back to the all-time high (purple scenario).

The green scenario on the daily chart is a triangle right shoulder on the inverse H&S before a breakout to retest the all-time high.  It’s possible but unlike (because of the megaphones on the 60-minute chart) that XLE will break out of that inverse H&S without a triangle right shoulder.

The Neely set-up is the favorite longer-term.

Gold is Setting Up a Swing to its Megaphone Top

Gold Elected to Bottom in the Critical Decision Wave of its Red Price Channel and is Setting Up a Move to the Blue Megaphone Top

Gold Elected to Bottom in the Critical Decision Wave of its Red Price Channel and is Setting Up a Move to the Blue Megaphone Top

Gold formed a price channel (red) on its move down from its April high and elected to form a bottom in the critical decision wave of the price channel.

Gold is now breaking out of that price channel as it forms either an inverse head and shoulders (green scenario) or megaphone (purple scenario) bottom for a swing to the top of the blue megaphone.

That swing could put in the top before a move down into the 700s, or gold could stay stuck in the blue megaphone for a while longer as it forms a big triangle between 1400ish and the 1050ish low.

I posted the long-term gold scenarios here.

OZM Neely Set-Up for a Big Move

OZM's 2008 Crash, Partial Retrace, Then Return to the Crash Low is a Neely Set-Up for a Move Back to the All-Time High

OZM’s 2008 Crash, Partial Retrace, Then Return to the Crash Low is a Neely Set-Up for a Move Back to the All-Time High

After OZM’s 2008 crash, it put in a partial retrace and extended topping process that has lead to its retest of the crash low.

Assuming OZM can actually break out upwards from a bottoming pattern here rather than go bankrupt, it will be in a Neely set-up for a return to its all-time high.

OZM is Working on a Megaphone Bottom (Blue) Across the 2008 Crash Low & within the Red Flat-Topped Megaphone Bottom

OZM is Working on a Megaphone Bottom (Blue) Across the 2008 Crash Low & within the Red Flat-Topped Megaphone Bottom

Right now, OZM is working on a prolonged flat-topped megaphone bottom (red on charts). Within that flat-topped megaphone, it’s working on the blue megaphone bottom for a swing back to the red megaphone neckline.

A breakout through the red megaphone neckline sets up at least a move to 14ish and ultimately the all-time high.  If the breakout through the red neckline fails, or if OZM can’t get back to the neckline, it’s likely bad news for the stock.

 

Yen Megaphone at Critical Decision Point

Yen is Back at VWAP of its Red Megaphone

Yen is Back at VWAP of its Red Megaphone

Yen futures are back at VWAP of a megaphone right shoulder (red) on a potential inverse head and shoulders.

The yen could slice through VWAP for a trip to the red megaphone bottom (green scenario), reverse here for an upwards breakout from the red megaphone (blue scenario), or start a new megaphone here for a series of megaphones inside megaphones that will ultimately form a triangle (purple scenario).

The purple and green scenarios are the favorites.  If we get the green scenario, it will likely bog down at VWAP after a retest of the January 3 low to morph into the purple scenario.