AJ is in an impulse wave and I have been taking a close look at it. It is about to run into the 1.618 extension of wave 1 at the 84.60 level, which also lines up with equal length of the large correction it just made, definitely a level price may react from. So, considering everything I have looked at, including measuring the smaller impulses within this impulse, if AJ does some type of wave 4 like correction in this zone (which price levels are labeled on side bar) without breaking up and breaking yellow trend line, I would look for another wave up possibly even extending up to that 1.618 extension. If it were to continue this breakout, I would look for a deep wave 2 retracement from that 1.236 extension zone above. The way it is measuring, I just feel like that yellow trend line (top of impulse) will be useful. We can go into a combo pattern that can provide a nice sell or even continue down long term, but I have to consider it to be in an uptrend until I get higher time frame sign of reversal. We'll probably get a sell from the 84.60-85.00 level but it may be short lived. It's at a major level and supply zone right now and there are 2 ways of thought. Some may be looking to take it back down for a bigger "X" wave, which is possible considering summer, but it doesn't look like that to me. In summary, very nice buy if we get some nice corrective structure, be careful with trying to hold the sells. I will try to update you on it. It's much easier to explain and understand if you just watch when I do my live you tube streams. We might wind up with something that gives us an overlapping diagonal that will be tradable both ways....
Comment:
Basically, I expect an extended 5th wave in the form of an overlapping diagonal, but whatever it does I am ready.