We have seen a rally since July this year as a 5 wave leg down was completed. This rally should be a 3 wave ABC move of a larger Zig Zag pattern playing out.
If its not a 5 wave move then it must be 3 waves, which means we are halfway through the move to the downside of a Zig-Zag pattern 5-3-5 wave correction.
We have had a bearish divergence between the RSI and CBRSI with prices since July with both these indicators making large moves without price following.
If the indicators move and the price doesn't follow, and you're in the direction of the indicator. You are on the wrong side of the market.
The RSI failing to hold above 68.38 level is the ceiling for a bearish trend. We should see the RSI push through the 41.78 level which is the
the support level of a bullish trend in the RSI.
The 172517 level is a confluence zone of Fibonacci levels measured from the different price bars with significant moves.
I also use the standard charts fib extension tool (shown in grey) which also confirms a target of 17257.
The good news in all of this is that corrective moves, of this type, are there to get a market correction over and done with before a much large move higher.
When the price gets into this zone I will be opening up the old war chest ready for the price to zoom higher.
Zig-Zig patterns are always fast-moving, so kept your eyes wired open.
If its not a 5 wave move then it must be 3 waves, which means we are halfway through the move to the downside of a Zig-Zag pattern 5-3-5 wave correction.
We have had a bearish divergence between the RSI and CBRSI with prices since July with both these indicators making large moves without price following.
If the indicators move and the price doesn't follow, and you're in the direction of the indicator. You are on the wrong side of the market.
The RSI failing to hold above 68.38 level is the ceiling for a bearish trend. We should see the RSI push through the 41.78 level which is the
the support level of a bullish trend in the RSI.
The 172517 level is a confluence zone of Fibonacci levels measured from the different price bars with significant moves.
I also use the standard charts fib extension tool (shown in grey) which also confirms a target of 17257.
The good news in all of this is that corrective moves, of this type, are there to get a market correction over and done with before a much large move higher.
When the price gets into this zone I will be opening up the old war chest ready for the price to zoom higher.
Zig-Zig patterns are always fast-moving, so kept your eyes wired open.
Time is the only true currency...how will you spend yours and what value will you receive?