Below is a post I took from SI from testman714.

Its an excellent post I think worth reading.  I hope he can continue to put out these scenarios as I find them helpful.  Thanks testman714!

Q*bert

From: testman714

Ok Some points regarding the latest price action.

Just to review since Dec 1… I have been posting basically a two scenario situation playing out. Not a broad perspective but two perspectives interleaved together and waiting for one of them to show its hand more convincingly. Scenario one : we keep on moving up to the 8$ mark and then ultimately 10/11$ where we would have finally topped.
Incidentally the 5.00 to 3.99 pullback target posted applied to this first scenario. The selling that took place the other day put a major dent into this scenario.

Scenario two : The top is in at 7.50. Since the end of last fall I was sceptical of the continual stretching of this last leg up. From there price can consolidate down to 2.07 to .94. Typical pullback target. Big picture is still very much intact.

Tricky waters are being navigated right now based on which scenario is playing out. Very pivotal area.

Based on the depth of the latest pullback ? Scenario two is becoming more likely. Scenario one ..albeit still technically valid is hanging by a thread as far as probability is concerned. Really needs a stick save here. To that it’s here where price needs to prove its bullishness. Though one more downward poke could happen expecting upward movement now and will be watching for how it plays out. If this meanders up in a choppy corrective fashion then that’s a definite clue that there will be likely one more bout of selling. These abc diagonal type structures love to cut deep and jump high leaving both bears and bulls shaking their heads. However if this scenario two that I’m tracking plays out ?
It’s from down here that I’ll be looking for a bottoming structure to initiate and open the door for the C wave up completing the 3rd wave that will be targeting the 23/40$ mark. It’s all up to price presently. GLTA.