My Fibonacci Ratio analysis:
The AB leg retraced nicely to the Fibonacci level of the XA leg.
The BC leg also retraced up to the Fibonacci level of the AB leg.
The Fibonacci 127.2% retracement of the BC leg falls right on top of the Fibonacci level of the XA leg
The 127.2% of the AB leg is 4 handles above the level of the XA leg.
All these factors point to a potential reversal zone around Point D.
Trade plan for this setup:
Place pending order to buy at point D
Stop loss is under fib 88,6 which I see as a secure bounce area
First Target is the 38.2% fib retracement level of the AD move around 2.27
Second Target is the 61.8% fib retracement level of the AD move around 2.47
Safe trading Ladies and Gents!
Price is right ow within a tight wedge or in EW terms in an ending diagonal - it will result in a break to the up side and a good turning point is at the 78,6 fib.
That could very well mark the end of wave 3 and a 4 up to come. The 5th wave could then very well end at the 0.886 fib after the breaking of the ED.
I see this as ending the lang down turn in the stock as it could very well result in being a wave 2 down and a 3rd to begin.
If you see it test 1.60 again then is't the 4th time around which normally means it's going lower after a dead cat bounce. But time will show. BM