The recent move to the sub $24 could be considered a valid ABC.
There's 2 guidelines pointing towards this price as an end:
- In a zigzag, A is often equal to C.
- Inside C, the end of the 5th waves at this price would follow the guideline saying that when the 3rd wave is the longest, the 1st and 5th are often of the same length.
There is, however, an argument to be made in favour of the bears.
- There seems to be a confirmed H&S with a target price of around $22.40.
- The 3rd of C doesn't look extended. As such, one would expect the 5th to extend, possibly bringing the price to around $22.50, where the 5th would be equal to 0.628 of the entire wave C.
These conflicting signals made me lower my stops near the recent lows to preserve my gains and I've been stopped out today. Until a clear opportunity presents itself, I'll wait on the sideline.
There's 2 guidelines pointing towards this price as an end:
- In a zigzag, A is often equal to C.
- Inside C, the end of the 5th waves at this price would follow the guideline saying that when the 3rd wave is the longest, the 1st and 5th are often of the same length.
There is, however, an argument to be made in favour of the bears.
- There seems to be a confirmed H&S with a target price of around $22.40.
- The 3rd of C doesn't look extended. As such, one would expect the 5th to extend, possibly bringing the price to around $22.50, where the 5th would be equal to 0.628 of the entire wave C.
These conflicting signals made me lower my stops near the recent lows to preserve my gains and I've been stopped out today. Until a clear opportunity presents itself, I'll wait on the sideline.