On today's Daily chart at the top, you can see we're still above the Butterfly D3 point, still above the 161.8% Fibonacci extensions of both the green and yellow ranges (see previous posts for a wider view of the Daily chart where you can see the ranges), formed a Doji candle which represents indecision, and closed very close to the 8ema. These are indications the current down leg has insignificant momentum.
On the Daily chart on the bottom, we zoom in to show that we closed the Gap. Now that the Gap is closed, we no longer have what I like to call "Gap Pressure", which means there's an attraction to price to reverse and fill in a gap. So now, with the gap filled, price is free to resume the uptrend.
The expectation from here is to reverse direction, go up and penetrate the 20sma (thick green curvy line). and continue up to fill the next gap, which is from 226.25 (11/8/21) - 215.97 (11/16/21). We'll probably get a temporary rejection and drop after filling that gap because in addition to the gap is the 50sma, which is currently in the gap (thick red curvy line).
After that, we can continue upward to our target of 260, which is the .618AD3 retracement.
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