Yesterday started with a nice downward drive and looked like we might hit our 219 target, but then it retraced and closed just above the 50sma. In addition to that uncertainty, the candle closed as a doji, which symbolizes uncertainty.
We're still below the 8ema and stochastics are above 20%, so we want to hold our short position. In addition, the little bounce we had the past three days and yesterday's slight break below it sets up a possible AB/CD lightening bolt pattern. I added the yellow bold vertical line segments as the projected measured move. The thin horizontal yellow line is half the measured move, which I find is more reliable than the full measured move. Notice the halfway point of the AB/CD measured move is very close to our target of 219 which we established from the white line segments based on the Head & Shoulders pattern and the 50% Fibonacci level. This confluence adds confidence to the target level.
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