p2hku

BCH ABC correction after wave 3, possible strong support area

Long
p2hku Updated   
BITFINEX:BCHUSD   None
BCH has completed 3 impulsive waves up and is now on it's 4th wave forming an ABC correction. The $510-520 range will provide excellent support to start the final 5th wave up for the following reasons:
1)$500 is 0.5 fibonacci retracement level from wave 3
2)wave C has gone past 1:1 fib extension of wave A meaning it will likely hit 1.618 extension at ~$517
3)if 5th wave of wave C will hit 1:1 fib extension the target would be ~$512
4)price action provides support between $510-520, marked with a green box
5) ichimoku cloud not visible on chart, but it marks support at ~530 level, usually we will get a wick slightly below

If this area provides support, we can expect further upside movement from BCH. Always wait for a confirmation before taking a trade.
Trade active: BCH bounced from 510.6
Breaking the falling wedge resistance with good volume would confirm reversal.
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