Correction started as predicted: Two possible targets
NASDAQ started its correction at 7530 as expected. Please see a post below predicting the correction to start around 7500 level.
How low could NASDAQ go before moving up? There are two possibilities:
How to determine the target?
In both scenarios, NASDAQ is likely to go down to around 7200. A wave to the upside is likely to start around this level in both situations: a bullish wave in the first scenario and the corrective fourth wave in the second scenario. In the first scenario, it will be made up of five waves whereas in the second scenario it will be made up of only three waves. Moreover, if this wave crossed the 7360 level, then the second scenario will be invalidated. Thus monitoring this wave will give an idea of the ultimate level of correction.
Post predicting the start of correction around 7500 (July 10):
www.tradingview.com/...edicted-What-s-next/
How low could NASDAQ go before moving up? There are two possibilities:
- Scenario 1: If the first wave from 7530 to 7360 is the A wave, then the correction is likely to end at around 7200 (less likely).
- Scenario 2: If the first wave from 7530 to 7360 is just the first wave of the A wave as shown in the chart, then the A wave is likely to continue to go down to 7140, then correct in wave B before going down again in wave C to around 6800 as shown in the chart.
How to determine the target?
In both scenarios, NASDAQ is likely to go down to around 7200. A wave to the upside is likely to start around this level in both situations: a bullish wave in the first scenario and the corrective fourth wave in the second scenario. In the first scenario, it will be made up of five waves whereas in the second scenario it will be made up of only three waves. Moreover, if this wave crossed the 7360 level, then the second scenario will be invalidated. Thus monitoring this wave will give an idea of the ultimate level of correction.
Post predicting the start of correction around 7500 (July 10):
www.tradingview.com/...edicted-What-s-next/
Comment:
Scenario 1 chart:
Comment:
NASDAQ is dropping nicely almost as predicted in the chart. It appears to be in the fifth wave now. A correction to the upside will start after the completion of the fifth wave. Watch out!
Comment:
NASDAQ moved up from a level very close to the predicted level (actual: 7166; predicted 7140). Load new bars to see for yourself!
Note that this bullish move could either be a completely new wave (as indicated in Scenario 1 chart above) or it could just be the B wave of the ABC pattern (main chart). If it is the B wave, then a C wave to the downside would start after its completion as indicated above.
Hope the analysis was helpful. Stay tuned!
Note that this bullish move could either be a completely new wave (as indicated in Scenario 1 chart above) or it could just be the B wave of the ABC pattern (main chart). If it is the B wave, then a C wave to the downside would start after its completion as indicated above.
Hope the analysis was helpful. Stay tuned!
Comment:
Triangle formation: Likely to be wave 4 of the bullish wave pattern, meaning that 1 more wave to the upside is expected after breakout of the triangle.
Comment:
Overall update:
NASDAQ has been going up in a bullish wave which could be the corrective B wave (red) as shown in the chart below. The C wave will start after the completion of this wave, if this Elliott wave count is correct.
Alternative scenario: It is possible that this bullish wave is a new Elliott wave with five sub waves as shown below. If this is correct, then NASDAQ will correct by 50-60% after the completion of this pattern before moving up.
Both the above scenarios are possible at this stage.
NASDAQ has been going up in a bullish wave which could be the corrective B wave (red) as shown in the chart below. The C wave will start after the completion of this wave, if this Elliott wave count is correct.
Alternative scenario: It is possible that this bullish wave is a new Elliott wave with five sub waves as shown below. If this is correct, then NASDAQ will correct by 50-60% after the completion of this pattern before moving up.
Both the above scenarios are possible at this stage.
Comment:
The breakout from the triangle was not that strong, so NASDAQ could still go down in Wave C from here as originally expected. Note that the current NASDAQ level is only 25-30 points higher than the expected level of start of wave C as shown in the chart, so it is within the expected zone. Price action on Monday will clarify the future direction.
PS: This analysis is for educational purposes only and is not a recommendation to buy or sell. Please do your own research and trade at your own risk.
PS: This analysis is for educational purposes only and is not a recommendation to buy or sell. Please do your own research and trade at your own risk.
Comment:
Update:
PS: This analysis is for educational purposes only and is not a recommendation to buy or sell. Please do your own research and trade at your own risk.
PS: This analysis is for educational purposes only and is not a recommendation to buy or sell. Please do your own research and trade at your own risk.
