Continuation of previous thread where I called the start of this biotechnology bear market and the 1:1 ABC target as been hit.
At the time of making the previous thread the gap down made it clear that the upthrust was a B wave topping out at the typical 0.618 with overnight selling pressure coming in.
And now price has collapsed it is clear to see with long term trendline breaks and the 20 and 50WMA now as resistance that the dominant trend is now to the downside.
For this reason it is most likely that price will now continue to the 1.618 @$94. It may have a small X wave bounce to make a WXY or at may just capitulate in this area for a C wave extension.
And this is why i'm often less concerned about the exact EW count because it is the target fib that is what is important and relevant volatility to make that judgement. Just in the same way that if I invite you round for dinner I won't be overly concerned about the journey you take as long as you do turn up at some point.
I think also in favour of price reaching $94 is that it will intersect the lower trendline and probably go oversold on the weekly RSI.
From there I would imagine there will be another higher degree corrective upthrust before another leg down.
Not advice.
At the time of making the previous thread the gap down made it clear that the upthrust was a B wave topping out at the typical 0.618 with overnight selling pressure coming in.
And now price has collapsed it is clear to see with long term trendline breaks and the 20 and 50WMA now as resistance that the dominant trend is now to the downside.
For this reason it is most likely that price will now continue to the 1.618 @$94. It may have a small X wave bounce to make a WXY or at may just capitulate in this area for a C wave extension.
And this is why i'm often less concerned about the exact EW count because it is the target fib that is what is important and relevant volatility to make that judgement. Just in the same way that if I invite you round for dinner I won't be overly concerned about the journey you take as long as you do turn up at some point.
I think also in favour of price reaching $94 is that it will intersect the lower trendline and probably go oversold on the weekly RSI.
From there I would imagine there will be another higher degree corrective upthrust before another leg down.
Not advice.
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