We have 5 waves (green) done and there is bearish divergence with RSI making lower low on the 8H timeframe. The 21 Weekly MA acted as resistance above $300 and rejected the price.
Optimistic Scenario: This 5 wave is beginning of a new rally, and we correct to 0.5 Fib ($250) or 0.618 Fib ($230) before we make new highs (bove $310). The 50 WMA can also support at $250
Pessimistic/Bear Scenario: We just finished a flat correction and will make a lower low (below $200) as part of (C) wave. But the move down will be in 5 waves. We will know soon enough
Eitherways, we have to correct
Comment
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Dropped as expected after resistance @ 0.618(B)
Bullish:ABC correction after which the rally continues to make new highs A:C length=1:1 & also within red channel.Must cross median line (275) & break out of channel
Bearish:Bounce must be< $277, we break below channel($258)
Trade closed: target reached
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We planned for $250, got $252. Good enough! Getting support from channel bottom again and from 50DMA/50WMA ($250)
Bearish:We lose the channel & 50DMA support Bullish: We bounce here, take out resistance at $260, median line and finally out of red channel