Market gives clear indications that the corrective wave (4) is currently developing when it completely violated the invalidation level (2225) (16thAug18 analysis) and managed to close the gap area (2230 – 2243) (17thAug18 analysis).
The 3-subwave structures are apparently seen in the first 4 waves (A, B, C & D). The final leg should have the same structure as well in order to complete the correction phase. If new high is formed, it will be limited by the supply zones (2252 - 2262 & 2265 -2275) and the extreme high of wave (4) will be governed by the established upper channel (solid blue line).
2 possible scenarios can be deduced as far as Elliott Wave is concerned.
In the first scenario, market may attempt to reach new high at the supply zone (2252 - 2262) before trading lower to the demand zone (2214 - 2227). Market will then may make the final push upwards to complete wave (4).
In the second scenario, we anticipate market to trade lower before moving upwards.
If market is able to break lower channel (solid blue line) and close the gap area (2164 - 2180) in a decisive manner, it signifies wave (4) had already terminated at 2265 price level and wave (5) is currently unfolding. A recount will be required in this case to reflect the change of direction. Likewise, a recount is needed if market is showing a resolved movement upwards, breaking the upper channel.
We will see what market offers us today.
The 3-subwave structures are apparently seen in the first 4 waves (A, B, C & D). The final leg should have the same structure as well in order to complete the correction phase. If new high is formed, it will be limited by the supply zones (2252 - 2262 & 2265 -2275) and the extreme high of wave (4) will be governed by the established upper channel (solid blue line).
2 possible scenarios can be deduced as far as Elliott Wave is concerned.
In the first scenario, market may attempt to reach new high at the supply zone (2252 - 2262) before trading lower to the demand zone (2214 - 2227). Market will then may make the final push upwards to complete wave (4).
In the second scenario, we anticipate market to trade lower before moving upwards.
If market is able to break lower channel (solid blue line) and close the gap area (2164 - 2180) in a decisive manner, it signifies wave (4) had already terminated at 2265 price level and wave (5) is currently unfolding. A recount will be required in this case to reflect the change of direction. Likewise, a recount is needed if market is showing a resolved movement upwards, breaking the upper channel.
We will see what market offers us today.