Hello Traders,
sometimes it is a challenge to identify impulsive moves because they did ot shows it`s character and that makes it difficult to recognize them. As you will observe at the shown chart, this is the case at the move from 24540.
I have labbel the chart as a wave (i)-(ii), with wave (ii) developing into a flat correction (a-b-c)! Interesting to observe is, that the the move from the wave (ii) low extends the 1.618 Fibonacci extension of wave (i) and the move possibly endet with a spike (wave i), as often shown by commodities and currencies at wave 5 of high degrees. At this high I have drawn a declining trendline that connects the high at 28883-28193 and we will observe if this should morph into resistance.
The decline to the downside since is a „three-down“ but to me it seems not complete at all. I have placed a red trendline at the resistance zone @27996, so the next move should occur to the downside to complete an a-b-c or an w-x-y pattern!
The blue trendline shown below the last low should act as support, it got touched two times, first it mark a high and the second contact bounced up to new highs. Notice the open gap below this trendline which maybe will be filled in the coming hours and days. Also important to notice is, that at the second open gap the .618 Fibonacci from the move up took place. So it could be possible, that all the remaining open gaps will be filled. Keep in mind, that the character of a wave two will stretch the confidence by traders to a maximum and let them think, that the bear market is back! This is the character of second waves!
I will update the chart at Tuesday or Wednesday.
Have a great weekend....
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!
sometimes it is a challenge to identify impulsive moves because they did ot shows it`s character and that makes it difficult to recognize them. As you will observe at the shown chart, this is the case at the move from 24540.
I have labbel the chart as a wave (i)-(ii), with wave (ii) developing into a flat correction (a-b-c)! Interesting to observe is, that the the move from the wave (ii) low extends the 1.618 Fibonacci extension of wave (i) and the move possibly endet with a spike (wave i), as often shown by commodities and currencies at wave 5 of high degrees. At this high I have drawn a declining trendline that connects the high at 28883-28193 and we will observe if this should morph into resistance.
The decline to the downside since is a „three-down“ but to me it seems not complete at all. I have placed a red trendline at the resistance zone @27996, so the next move should occur to the downside to complete an a-b-c or an w-x-y pattern!
The blue trendline shown below the last low should act as support, it got touched two times, first it mark a high and the second contact bounced up to new highs. Notice the open gap below this trendline which maybe will be filled in the coming hours and days. Also important to notice is, that at the second open gap the .618 Fibonacci from the move up took place. So it could be possible, that all the remaining open gaps will be filled. Keep in mind, that the character of a wave two will stretch the confidence by traders to a maximum and let them think, that the bear market is back! This is the character of second waves!
I will update the chart at Tuesday or Wednesday.
Have a great weekend....
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!