One of the quicker, catch-you-on-the-wrong-side type of trades out there.
Technicals look ripe for this scenario to play out.
Red Line is "Unsustainable" Trend support. (Nothing like in January though)
Blue Line is "Return to Mean" Trend support.
Horizontal Black Line is "Middle-of-Range" support.
Thick falling and horizontal black lines are prior descending triangle.
Green Support Zones are significant not arbitrary, I removed all of the markers that helped me arrive at those targets to have a clean chart to post.
Red Zone is significant as well.
These Zones take into account Time as well as Price.
The Red Zone is smallest because that's where I'd like to see weakness kick in if my Time component is correct. Also the entire pattern is reliant on the Lower-High (hence the title).
I compensated Price slightly because of the shortened Time by giving myself a 55 cent wide Red Zone. The Green Zones are 40 cents wide as they're more forgiving in Time, allowing me to be stricter with Price.
Falling into the Yellow Caution Zone would force me to reevaluate the longer term picture. I plan on entering on the 2nd & 3rd Green Support Zones, and exiting those longs if we fall back into the descending triangle after breaking out of it previously. Will exit short upon a move above $279.50. Wish me luck!
-RH