Pretty self explanatory on the chart. I've just added the latest wave counts as it appears we are in a Wave 2 retrace of the 1st Major Bull Impulse Wave after we hit the bottom. These extensions show we will continue to retrace over the next week back down to 4650 range. Then Wave 3 will take us up to the important overhead resistance zone of 6000-6150 in a month, by Mid May, and then we will reach 7000 by July. At this point, we should see a major retrace again all the way back down to 5000. So the 7000 target would be a great spot to take some profits. Of course this is just an educated guess at this point, the timeframes on any of these waves could be much shorter or much longer as depicted.
The rising black trendline is a line drawn from 2015 to 2017 as the rising trendline before the major rally in late 2017. I expect this to provide further overhead resistance for the remainder of 2019.
The rising black trendline is a line drawn from 2015 to 2017 as the rising trendline before the major rally in late 2017. I expect this to provide further overhead resistance for the remainder of 2019.
Comment:
This idea from a month ago has been pretty spot on so far. Didn't quite retrace as far as I had hope on Wave 2, but Wave 3 has hit darn close to my projections, and a bit higher, actually. I still expect the Wave 4 retrace to come back to 54000-5500 range before the real push up to 6800-7000 range.
