However, we are making normal retracement which might appear in monetary term rather deep and unwelcome by some. But in normal cycle upon completion of wave 3 it is normal for price to retrace to wave 4 of one cycle degree lower. So in this case it would be still possible for price to drop to 70-80 area and still be within the EW guideline. However, for now I am on cautious view feel 450-400 would suffice but likely 300-250 could be realistic.
So whilst still longer term , it could offer possible short opportunity around 850 of better.
First Being the Double Bottom Visible on Your Chart at Points: Left (iv) and x
Second: MACD Bullish divergence at Points: (A) and (X)
Third: RSI Bullish Divergence at Points: (A) and (X) (drawing a line at bottom of these points reveals it (in RSI window))
Fourth: StochRSI on Weekly Chart
Fifth: StochRSI on 3D Chart
Sixth: RSI Trend Line you have Drawn at the Upper Chart Indicates Going Lower than 450-400 Breaks the Uptrend Which is Unlikely to Happen
Seventh: Formation of Current Monthly Candle which Indicates a Healthy Retracement and not a Reversal Signal visible here
While i Remain Disagree to this Chart and Targets Lower than 450-400, i Agree with your other prediction
which is happening perfectly atm
- I agree about long term scenario
- Also it does look we have not started impulsive wave upwards yet. Therefore we are still within a correction.
- However I think this correction (wave iv) is forming a triangle. It is not a flat as you suggest. So far wave A is finished at $455 and we are probably still within wave B of this triangle. It is going to take another month or two to finish all remaining waves. Maybe even longer. We need this time to tire many participants who are overly optimistic at this stage.
- I meant big contracting triangle as wave 4. So most probably there won't be any new low as subwave A in contracting triangles is usually longest one.. Subwave A of this triangle ($455) was the lowest point. We are in subwave B upwards. Then we will experience subwave C which will not make new low.