ABC correction is seen after 5 Elliot waves, after point (C) has made retracement to .618 fibonacci level instead of continuing the downtrend it broke above orange trendline. Previous bullish candle has relatively high volume. High volume of sellers at .618 of wave (C) indicating downtrend to resume however, were overwhelmed by buyers pushing prices further up, reversing the downtrend. Stochastic however is in overbought area.
Here are some of my additional confluences going long on this trade
- Bullish MACD
- Relatively high volume on break of orange trendline
- Key .618 fibonacci level for downtrend to resume was broken
Here are some of my additional confluences going long on this trade
- Bullish MACD
- Relatively high volume on break of orange trendline
- Key .618 fibonacci level for downtrend to resume was broken