@tooler
Hi, not sure what chart you are looking at but the weekly shows 3 large (to me) grey rectangles with the highest one showing the weeks candle which is still being built & so subject to change.
The rectangles represent the price range of each & are also the expected target after each one breaks out.
From experience with breakouts, the expected target is the size of the prev range with a minimum expectation of half. The mid point of the range then is usually a resistance with the breakout point becoming support then support until broken thru. That area is tested multiple times & either fails or forms the base for the next breakout with the top of the box being resistance.
The current size of the candle then is around the mid point of the latest breakout & so my expectation is that we will retest the breakout point at some time.
There are other projections that verify the targets so it is not just reliant on one projection to predict the targets.
Drawing price ranges to measure price targets is generally accurate & is similar to other consolidation patterns such as flags, triangles, channels & even the cup & handle.
I find these range boxes to be the most accurate & reliable of all the patterns.
I also look at the indicators for verification, particularly as the sp approaches the expected pinch points.
While the s/t signs are for a slowing & possible pull back they are not indicating any change in the overall sentiment & the sp is likely to reach 42 in this cycle.
At this stage 36 – 365 should be support.
