Furthermore, we can see we have broken down from a in on the 4 hourly, and we have even backtested the breakdown and failed to recover, showing we are headed lower. If this is a Wave 1, then Wave 2 should follow, and green targets have been marked with horizontal lines to show possible ends to this dip. They are based on the 38%, 50% and 61.8% fib retracements of this last wave up (assuming we hit 11.7k before the actual dip begins). Targets will be updated once the dip begins!
After this dip, the longer term trend is still up and we should see 12-13k shortly after. Wave 3 will follow this dip, and it is known to be the longest and strongest, so the best is yet to come for this run!
***THIS IS NOT FINANCIAL ADVICE, SOLELY MY OPINION. DO YOUR OWN RESEARCH BEFORE MAKING ANY TRADES***
I have also adjusted the bottom trend line that makes up the bottom of the wedge to account for the Wave 4 dip to $11,480 levels (what I previously called a breakdown). Since we recovered from this, I expanded the width of the wedge to take this dip into consideration as we must consider all possibilities for the wedge bottom. This expanded wedge also gives us a bit more time for this 5th subwave up to complete before we breakdown for the dip.
The OLD bottom trend line for the wedge is now the green DOTTED line in the chart below and the new one is now the green SOLID line. This way you can see the difference between the two and see the new boundaries of this wedge clearly.
It looks like we got a failed fifth wave (ended lower than previous wave 3) and the dip has begun a bit earlier than expected. Targets have been adjusted since we now know where the final impulse up ended, and I have added a more conservative target that is around $11,100. This target is the 23% retrace and although it is very rare for Wave 2 to only retrace 23% we must consider all the possibilities. Odds are in favor of us hitting the 10.5k and 10.3k targets but I have laid out all the possibilities on the table for your reference.