The first date to watch is May 13-14th which could turn out to be Top so if price continues to move higher into this point it could be a good point to take some profit if you are already long or look to enter a short position. There are several options available to us .
Firstly we could look to short May 13-14th with the expectation of trend moving down into the 22nd which would give us around a week short exposure then if the move did eventuate toward the downside we could look to lock in some profit within that timeframe if we had some large down bars and good profit is available to us . Bear in mind that this could only be a short term pullback of around a week so if we do play the short side we only have that limited week time period to potentially lock in profits.
The second approach would be to wait for the 22nd May to roll around which could set up as a counter trend Low opportunity which may allow you to sit on the sidelines for another week with the expectation of re entering the trend if we do pullback and set up correctly .
The next date to watch is May 31st - Jun 3rd which comes out across the weekend so this point could turn out to be Top which would give us around 1.5 weeks exposure if we were to take long positions out of the 22nd May Low. These three dates are presented below in The Curve so as outlined previously it is important to be patient and wait for these dates to roll around and then we can look to " trade out of the dates " if the market confirms to The Curve and sets up properly - by waiting for this to occur we increase the probability of being correct and on the right side of the move . Usually a few days before the target date the position of trend and volume should give us a clear indication of what to expect leading into that date - As the 13th - 14th May is projected Top it would be wise to wait a few more sessions and see how price is moving into that point - sometimes we can get a creeping market or an extension bar leading into the Top so if we do get a high on that date we would switch our view to a 30 or 60 min tick chart and study the pattern around the 13-14th to see if we are making lower tops or bottoms on that timeframe and then we would set a time based stop on the 13th-14th May - this means that the price has to remain lower than the 13-14th and start down in order to validate the Cycle so that is an important safeguard and will keep our losses to a minimum and hopefully maximize our profits.
It is interesting to note that April 19th came in 175 days out from the Oct 27th Low which was just five days short of the 180 day cycle - quite often significant moves will culminate 5-9 days either ahead or before these counts so it is crucial to keep up these time counts on your charts especially if there is multiple time frame convergence into a narrow time window.
This is evident around the 31st May - 3rd Jun with multiple Fixed Cycles lining up into a small time window - firstly as illustrated on the chart we have a 45 week Top to Top count then on the smaller timeframes we have 45TD and 45CD coming in as well and in addition to that we have a matching time period of 218 days which is projected into 31st May - 3rd Jun so there is a strong chance of reversal around this point as outlined in the notes below.
Comments