It is quite clear that we had a bottom because of the recent bullish uptrend. Now the question was it THE bottom of 2018 or not. This chart assumes that it is not THE bottom.
Here is the fun part, as per Elliott Waves , the uptrend can be
1) 1-5 waves: We bottomed out and started a fresh new cycle (Super bullish )
2) 3 ABC waves: We had a temp bottom and will have a upswing and then a downswing (short-term bullish )
So in both these cases we go up! To be conservative we are assuming the 2) is playing out. Now any ABC waves that go up usually have 5-3-5 sub-waves. The recent rally was definitely impulsive, which means that either we are done with A wave, so this correction is the B wave (3 sub-waves) and once B is done we should have an impulsive move up for C to the 5k range
The chart where we got support at the exact place at the bottom
Take Care. Stay Safe
Here is the fun part, as per Elliott Waves , the uptrend can be
1) 1-5 waves: We bottomed out and started a fresh new cycle (Super bullish )
2) 3 ABC waves: We had a temp bottom and will have a upswing and then a downswing (short-term bullish )
So in both these cases we go up! To be conservative we are assuming the 2) is playing out. Now any ABC waves that go up usually have 5-3-5 sub-waves. The recent rally was definitely impulsive, which means that either we are done with A wave, so this correction is the B wave (3 sub-waves) and once B is done we should have an impulsive move up for C to the 5k range
The chart where we got support at the exact place at the bottom
Take Care. Stay Safe
Comment:
Post where I'm tracking the correction on lower time-frame
Comment:
I believe there will be one more sub-wave to go down. The green zone has offered resistance and support during the rally and I'm hoping it will give support now
In addition, we have the 0.618 Fib level which is a great place for a reversal. Technically we can go down more, so better to be safe and look for confirmation
In addition, we have the 0.618 Fib level which is a great place for a reversal. Technically we can go down more, so better to be safe and look for confirmation
Comment:
As mentioned above, 0.618 Fib level is a great place for reversal and look where we turned around. Note how 0.5 Fib gave support to A wave and 0.382 gave resistance to B wave.
Also note how previous resistance turned support now (marked by red and green arrows on the green line)
Isn't this cool
We do appear to be on the final C wave up. Note that C wave can reach top of A, fall slightly below it or go upto the target range we defined in the start of this post
Also note how previous resistance turned support now (marked by red and green arrows on the green line)
Isn't this cool
We do appear to be on the final C wave up. Note that C wave can reach top of A, fall slightly below it or go upto the target range we defined in the start of this post
