Breakout in Stocks?

17 Kas 2020

Stocks are currently bounded by 3632, which is the Fibonacci extension level from Fib levels we have anchored last week. Stocks look like they are building pressure for a breakout. The Kovach OBV looks pretty bumpy but appears to be gathering steam. Broadly speaking, it is looking pretty bullish. We may see a retracement before the breakout, so be careful. If we see a retracement, 3547 seems reasonable. At this point we would be forming a proper bull wedge pattern, assuming that dip was bought back. If we are able to break out, stand by for new levels as the next Elliott Impulse wave begins