YM Dec Dow Jones Futures daily chart above shows a Head & Shoulders pattern (yellow). We broke and closed under the neckline. I have found price often goes to 50% of the Head & Shoulders projection. In this case that is about 26386.
The angled white line segments show an AB=CD price projection, which is about 26500.
There's a gap from 26326 - 26233. So the gap fill would go down to about 26233.
A 61.8% Fibonacci extension of the Head - Neckline range (green) is 26247.
On the scope of this chart, these 4 levels are relatively close to each other, so a price target in the range of 26500 - 26233 is indicated. I think the best target is the 26247 61.8% Fibonacci extension. But what I'd like to do is scale out a quarter position at each level.
We could leave a small position on as a runner for a bigger move, but I expect the 4 possible support levels mentioned above, plus a previous consolidation area in this same range around July 15th - August 4th, will cause price action to reverse, at least temporarily. Then when that reversal tops, we can re-short. If we do get a reversal then a runner will just give us a loss, so I'd rather not put it on.
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