*Wave and channel analysis is mirroring the previous impulse nicely *
It looks as though we can expect another bullish reaction to the 4-hour SMA 25 and upper margin of the base channel as Wave 3 completes, with subsequent retracement to our prior sub-wave 4 terminus (a common occurrence). Simultaneous violation of SMA 25 is expected upon Wave 4 completion.
The SMA 100 should provide stabilization and the impetus for our Wave 5, at which point we will be looking for similar bearish divergence on MACD and MFI as well as higher degree (12-hour) MACD signal line crossover (downside) to confirm the end of this impulse wave.
At that point, will be looking for base internal trend line to remain intact as the major correction has hopefully completed, leading to a series of 1-2's as we enter larger Wave 3 complex.
Alternatively, as we have crossed the upper margin of the base channel, we could see much more impulsive high-side price action as Wave 3 elongates.
Let me know your thoughts!
Cheers :)
Heath V.
It looks as though we can expect another bullish reaction to the 4-hour SMA 25 and upper margin of the base channel as Wave 3 completes, with subsequent retracement to our prior sub-wave 4 terminus (a common occurrence). Simultaneous violation of SMA 25 is expected upon Wave 4 completion.
The SMA 100 should provide stabilization and the impetus for our Wave 5, at which point we will be looking for similar bearish divergence on MACD and MFI as well as higher degree (12-hour) MACD signal line crossover (downside) to confirm the end of this impulse wave.
At that point, will be looking for base internal trend line to remain intact as the major correction has hopefully completed, leading to a series of 1-2's as we enter larger Wave 3 complex.
Alternatively, as we have crossed the upper margin of the base channel, we could see much more impulsive high-side price action as Wave 3 elongates.
Let me know your thoughts!
Cheers :)
Heath V.