Let's take a look at the current daily support pattern on the TF:

Click on image to enlarge!

The red trendlines trace a Gartley support pattern with the low established between the 1.272 and 1.618 targets of the February 23rd to March 4th low to high swing. The most important intervening resistance was the 100 percent price projection from that same swing, projected from the new swing low established on March 15th. That projection landed at 807.40, and it represents the rhythm of a potential downside pattern. I’ve left it on the chart to show that we’ve had a close above this level. Generally when the intervening price projection in a Gartley pattern is violated, the pattern plays out to the target. The initial target in this case is the 1.272 extension of the entire swing into the low: 851.40.

While the break of the price projection resistance puts this on track for the upside target, and statistically the targets within this pattern are more likely to be met once the that break occurs, we’ll get confirmation of this with a break of the .786 resistance at 820.40. Once that breaks, the target should serve as a price magnet and we’re likely to see our new daily swing high!

For more from Mark including his “Chart of the Day”, visit MJBraun.net.