FAZ (3xShort Financials ETF): Financials Bearish Watchlist
02-24-2014 Follow up: Invalidated Trade
Reason: Potential countertrend rebound that should unfold a Zig Zag ( Extra bonus if an IHS is confirmed)
Requirement: Price must hold Friday´s lod.
I don´t know how the market will open next Monday hence this setup is on a standby depending upon the R/R of establishing a proper stop.
Friday´s Doji is suggesting that price has established a higher low within a likely larger corrective rebound
If friday´s lod is not breached the equality extension target for the assumed wave (C) up is located at 23, but I would not rule out a potential 1.618 extension in which case price could fill the gap at 23.59 or even reach the 0.618 retracement of the decline from the February 3 high.
As a matter of fact in the 60 min chart below we can see that price could be forming an Inverted Head & Shoulder.
If the pattern pans out the theoretical target is located at 23.80