From the high of the previous impulse wave at $10,000. Price action has since broken down into five waves, with sub-waves complying to EW.
In EW the only correction in which wave A breaks down into five sub-waves is a zigzag.
Wave A of the zigzag has completed and now wave B is in play.
My current perspective for wave B is that it will break down into a simple flat. My reasoning for this is that the reason price action from the low of $7925 appeared to break down into three waves ending just below the .382 fib retracement of the impulse wave A.
Assuming wave (a) of the flat has completed at around $8650, we will likely see wave (b) end around the beginning of wave (a) at around $8100 and wave (c) moving back to around $8500-8600 breaking down in a five wave impulse wave.
This would complete wave B and wave C of the ZigZag will likely follow as a five wave impulse for which my target would be the .786 fib retracement of the previous impulse at around $7200.
A move above $8650 would invalidate this scenario and would suggest that wave B could be an alternative corrective pattern, however i do believe this is unlikely.
This is just my opinion, not investment advice.
In EW the only correction in which wave A breaks down into five sub-waves is a zigzag.
Wave A of the zigzag has completed and now wave B is in play.
My current perspective for wave B is that it will break down into a simple flat. My reasoning for this is that the reason price action from the low of $7925 appeared to break down into three waves ending just below the .382 fib retracement of the impulse wave A.
Assuming wave (a) of the flat has completed at around $8650, we will likely see wave (b) end around the beginning of wave (a) at around $8100 and wave (c) moving back to around $8500-8600 breaking down in a five wave impulse wave.
This would complete wave B and wave C of the ZigZag will likely follow as a five wave impulse for which my target would be the .786 fib retracement of the previous impulse at around $7200.
A move above $8650 would invalidate this scenario and would suggest that wave B could be an alternative corrective pattern, however i do believe this is unlikely.
This is just my opinion, not investment advice.