In my article on March 31st I presented a Fibonacci Time and Price scenario for a potential interim high once the target at $111 was met, especially if it hit within the timing parameters shown below:

Click on image to enlarge!

While price reached a bit beyond the initial target, the current swing high did indeed hold within the timing resistance parameters. These factors were calculated by measuring the amount of time between prior pivots, with an emphasis on the duration of prior rallies, and then multiplying those time periods by specific Fibonacci ratios and projecting from the swing low on March 11th.

Here’s a similar chart with the timing factors “flipped” to place the emphasis on prior declines, projected from the new swing high:

Click on image to enlarge!

Should this drop continue into the start of next week, a similar timing confluence, but for reinforced support instead of resistance, focuses on Monday to Tuesday, April 18th – 19th. There’s also very strong Fibonacci price support, telling us that we have to be extremely careful with short side. If we’re just seeing a corrective decline similar to prior downside moves, look for a recovery at the start of next week. It would take a continued breakdown into the middle of next week to call for a downside acceleration, since the rhythm of the uptrend would then be disrupted.

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