When we last left off on July 2, COMP was pointed toward a forecast of 3044 — the .886 retracement of the most recent decline from 3085 to 2726.  Since then, the slightly larger pattern has begun to look more well-formed; that is, the drop from 3134 to 2726.  This puts a Point B very close to the .618 on July 5.

continued…

It leaves 3047 as the Gartley pattern target at the new .786, and 3088 as the Bat pattern target at the .886.  If the purple channel continues to hold, either target looks achievable within the next couple of weeks.

The key will be breaking through the red trend line cutting diagonally across the chart.  This TL connects our Point X with 3 other interim highs (including our Point B) so should not be ignored.  It’s currently at about 2970 and should reach 2965 on Friday (OPEX.)

If we are able to break through, look for a rapid rise to 3047 and/or 3088 somewhere along the white, dashed TL.  This is the midline of a large channel that dates back to 2007.  The yellow line above and parallel to it is the upper bound of a rising wedge that also dates back to 2007.

The solid red lines cutting sideways across the chart are the bounds of a much larger channel that dates back to 2000.

So, any thoughts COMP has about turning the Gartley or Bat into a Butterfly or Crab will have to include breaking through that 12 year old channel.

Last, the RSI chart shows good potential for either the Gartley or Bat to complete with negative divergence if RSI can stay within the little triangle formed by the yellow and red TLs.

GLTA.