In addition, a weekly bearish reversal signal triggered this week on a decline below last week’s low of $99.22. Last week’s price action took the form of a bearish shooting star candlestick pattern, adding to the significance of the signal and therefore the potential for bearish follow-through. Since there has been only one leg down so far in the retracement, a second leg down could follow a bounce. A falling ABCD pattern formed during the prior retracement in July, and it may occur again.

$101.15 Becomes Key Bullish Trigger

Having said that, if Tuesday’s low holds and a subsequent rally gets above Monday’s high of $101.15, the retracement may complete with bullish momentum confirmed by the successful test of support at the 20-day moving average.