This morning I pointed out the head and shoulders pattern that was breaking down on futures (here). Let’s look at it again now.
That pattern generated a target, and it was down lower where we also have good fibs. IF we don’t get a decent retracement helping us to confirm a bullish impulse wave (here) and we just keep squirting up, then it’s possible that we’re in a proper short squeeze and a natural target for that is the trend lines above us here (red and orange):
And to be honest, if we just squirt like that, it might not be a good signal. We should start with a proper impulse wave. And maybe not a short squeeze (maybe). Usually, the short squeezes happen higher, not off of a low. If a short squeeze starts at a low, it sort of means that bears bought the low, and that’s not right. In principle, bears should be squeezed at a high after fighting an advance. So, anyways, if we become relentless, there’s a target for that.
I’m going to stay long/short. If we do go up there, I will close more calls, because I don’t like to be greedy and at some point there should be a retracement, though I will likely keep runners on regardless.
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