Like the previous two wave sets, the price corrected to the 38.2% Fibonacci retracement line. This indicates that the price may have reached a key support area. Although, like the past two waves, there may be some choppiness in the days and weeks ahead and there may be slightly lower local lows formed before the price can resume upwards momentum.
Also importantly, the lower support boundary has once again shifted down like the 2nd wave did.
Something to be wary of is the fact that 3 day MACD has topped, indicating this three wave sequence may see a more major correction before continuing upward, although a minor correction could still be forming. A break further down would see support at previous wave starts of 240 and 220. A break below those levels indicates a severe bearish move. If price can remain above $275 in the coming weeks, it would be quite hopeful for a resumption of the uptrend.
For now it seems safe to begin building a long position, with a stop somewhere below the 38.2% Fibonacci line and diagonal support, with an eye on previous consolidation levels.
Also importantly, the lower support boundary has once again shifted down like the 2nd wave did.
Something to be wary of is the fact that 3 day MACD has topped, indicating this three wave sequence may see a more major correction before continuing upward, although a minor correction could still be forming. A break further down would see support at previous wave starts of 240 and 220. A break below those levels indicates a severe bearish move. If price can remain above $275 in the coming weeks, it would be quite hopeful for a resumption of the uptrend.
For now it seems safe to begin building a long position, with a stop somewhere below the 38.2% Fibonacci line and diagonal support, with an eye on previous consolidation levels.