There has been mostly sideways action
since my post 10 days ago. This leads me to believe that likely wave 4 will be a contracting triangle which is a fairly common occurrence. Notice how there have been a series of negative divergences since the "TOP" in the 120 min. RSI
. However often there is a bullish divergence
in this indicator between the 3rd and 5th waves. We'll see. My personal target at which I will be taking partial profits (IF this all plays out) is around 105 to 106 (see target box). This level is based on 3 ideas: First this is at the lower end of a nice channel. Second often wave 5 has a Fibonacci relationship to wave 1 (vertical solid arrows on the 120 chart). Third the height of a contracting triangle often relates to the final move (dashed vertical arrows on the 30 min chart). All three go to a similar level. IFFFF my major count is correct there would next be a more extended side ways action
. IF however this is just wave 1 of (3) then there would be shorter correction with a MAJOR swift fall after that. Enjoy the holiday. Good luck in your trading. Goodguy.