After dropping very fast in wave A, the stock market has retraced in wave B and now appears to be ready to move in wave C of the ABC correction.
Where would the correction end?
Well, there are a few areas worth noting:
- Top rectangle: In this area wave c will be equal to wave a; 50 week moving average and the bottom of the log channel could act as support; and NASDAQ would have retraced 62% of the entire run since 2018.
- If the above area breaks, the next solid support is in the second rectangle shown on the chart where C =1.62 A; and 200 week moving average and 2018 pivot low could act as support.
PS: This analysis is just for educational purposes and is not a recommendation to buy or sell. Please do your own research and trade at your own risk.
Where would the correction end?
Well, there are a few areas worth noting:
- Top rectangle: In this area wave c will be equal to wave a; 50 week moving average and the bottom of the log channel could act as support; and NASDAQ would have retraced 62% of the entire run since 2018.
- If the above area breaks, the next solid support is in the second rectangle shown on the chart where C =1.62 A; and 200 week moving average and 2018 pivot low could act as support.
PS: This analysis is just for educational purposes and is not a recommendation to buy or sell. Please do your own research and trade at your own risk.
Trade closed: target reached:
First target reached. Expecting some retracement now...
Comment:
Second target reached.
