The Elliot Wave cycle we are in is suggesting to me that we are on leg 4 going up (Or leg 4 ending) of the downward corrective 12345 drive pattern.
The huge drop down is clear evidence that 3rd wave down has already completed because usually the 3rd wave of the impulse is the longest and most easiest to identify. I do believe that further consolidation is likely before the final leg 5 down will happen, unless we are already on the 5th leg down. Either case, I don't believe we are at a point where the correction has stopped.
I have identified the EMA 400 on the daily as a good candidate for correction completion. It's running near 7400 currently. That will fully have a 1:1 ratio of the XYZ pattern from above that I showed on one of my previous posts. There will likely be a fair share of consolidation getting to it though.
A short isn't fully advisable because you're trying to catch a bouncing knife, but longs are still out of the question for me anyways.
Please do note that we could fall even further than 7700 before the major leg back up.
The huge drop down is clear evidence that 3rd wave down has already completed because usually the 3rd wave of the impulse is the longest and most easiest to identify. I do believe that further consolidation is likely before the final leg 5 down will happen, unless we are already on the 5th leg down. Either case, I don't believe we are at a point where the correction has stopped.
I have identified the EMA 400 on the daily as a good candidate for correction completion. It's running near 7400 currently. That will fully have a 1:1 ratio of the XYZ pattern from above that I showed on one of my previous posts. There will likely be a fair share of consolidation getting to it though.
A short isn't fully advisable because you're trying to catch a bouncing knife, but longs are still out of the question for me anyways.
Please do note that we could fall even further than 7700 before the major leg back up.
Comment:
Slight update to previous.
Looks like 4 up to 5 is still in progress. Do expect some higher prices before the next leg starts.
Looks like 4 up to 5 is still in progress. Do expect some higher prices before the next leg starts.
Target potential still the same.