100 reasons why correction is going to continue and where it end
IMHO these are the reasons
1) We got first corrective wave down and a rebound rally was going in a perfect parallel channel up, indicating a classical bear flag
2) After 3rd perfect touch of upper line of the channel we got rejected perfectly at 61.8% FIB retracement mark
3) Bear flag, as expected, broke down and was ALREADY back tested
3) Normally when price rejects at 61.8 it goes further to ideally 1.272 FIB extension (if it rejects at 0.5 it usually goes to 1.618)
4) That takes us to a USD 3723 mark
5) which is also a perfect intersection with the main up trend line that started on 20th July
6) which is also a perfect target for a bear flag that broke down
So pretty textbook so far, nothing unusual, no surprises.
Therefore I am looking for shorts now and I have placed a few buy orders between 3800 and 3600
(3800 is higher than my target but technically we are still in a bullish market where downside disappoints and upside surprises)
My idea becomes obsolete once it breaks 4500s range or at least establish a series of higher lows in a 4300-4500 range.
I also think that there will be 1 more last drive up with either a perfect 1.272-1.618 extension up or a blow off top around Q1 next year
Thanks for reading
1) We got first corrective wave down and a rebound rally was going in a perfect parallel channel up, indicating a classical bear flag
2) After 3rd perfect touch of upper line of the channel we got rejected perfectly at 61.8% FIB retracement mark
3) Bear flag, as expected, broke down and was ALREADY back tested
3) Normally when price rejects at 61.8 it goes further to ideally 1.272 FIB extension (if it rejects at 0.5 it usually goes to 1.618)
4) That takes us to a USD 3723 mark
5) which is also a perfect intersection with the main up trend line that started on 20th July
6) which is also a perfect target for a bear flag that broke down
So pretty textbook so far, nothing unusual, no surprises.
Therefore I am looking for shorts now and I have placed a few buy orders between 3800 and 3600
(3800 is higher than my target but technically we are still in a bullish market where downside disappoints and upside surprises)
My idea becomes obsolete once it breaks 4500s range or at least establish a series of higher lows in a 4300-4500 range.
I also think that there will be 1 more last drive up with either a perfect 1.272-1.618 extension up or a blow off top around Q1 next year
Thanks for reading