The rally yesterday can be counted as WXY as explained in the previous posts. Y was 0.618 of W which is common when X is a triangle. The whole rally ended between 0.618 and 0.786 of the previous move.
The decline has taken the orthodox end of triangle X. If this count is correct price should decline sharply from here. Initial target is the median line of the orange pitchfork, followed by the lower parallel.
It is possible however for price action to morph into a triangle or a more complex correction before further rise. What I have counted as 5 waves down in orange can also be counted as a zigzag-type pattern, depending on how to count the subwaves within the expanding diagonal, in which case we would have 3 waves down and 3 up and this basically can transform into any number of corrective patterns.
I think the safest thing here from a trading perspective is to observe how the price interacts with the orange pitchfork and to establish support and resistance along its sliding parallels, in addition to observing how this decline would unfold.
RSI is below 40 suggesting resumption of bear trend on the 15 min chart at least for now.
The decline has taken the orthodox end of triangle X. If this count is correct price should decline sharply from here. Initial target is the median line of the orange pitchfork, followed by the lower parallel.
It is possible however for price action to morph into a triangle or a more complex correction before further rise. What I have counted as 5 waves down in orange can also be counted as a zigzag-type pattern, depending on how to count the subwaves within the expanding diagonal, in which case we would have 3 waves down and 3 up and this basically can transform into any number of corrective patterns.
I think the safest thing here from a trading perspective is to observe how the price interacts with the orange pitchfork and to establish support and resistance along its sliding parallels, in addition to observing how this decline would unfold.
RSI is below 40 suggesting resumption of bear trend on the 15 min chart at least for now.