VeChain is going to surprise us all....
There's no debate that VET has been one of the strong contenders in the recent market conditions so it's action in consolidation is definitely worth our attention.
Vet finished a clear impulse wave, making the June 11 high.
Then made a clear ABC consolidation that fits within a trading channel (TC) perfectly as per Elliott Wave guidelines.
From the June 15 low then price made a strong reaction that has so far broken and held above the TC.
In the lower timeframe below we see the clear 5 wave impulse substructure for wave 1 of a higher a degree and the proceeding ABC consolidation that is marked.
As strong markets often do, price is making an ending diagonal for wave C that often leads to sharp reactions.
From the volume signature we see two significant points:
1 - Overall, the general supply is shrinking, which makes price primed for an upthrust.
2 - in lower timeframe we still see supply not being done though, notice every time there's climactic action (large supply bars that are bought back), the lows are tested and broken with increasing supply.
That's why the ending diagonal idea is quite plausible here. Usually wave 5 of the ending diagonal AND the Phase C of a Wyckoffian trading range(that lead to the uptrend) are preceded with a climactic selling.
So here the bottom line:
There's going to have to be a capitulation large enough to create a "cause" for the rally. It hasn't happened, and it's primed to be here soon.
Once it happens (or the idea of a low become invalidated by a break and test of the trend liens) this is going to be very bullish very fast.
Long term trader / Holder - good accumulation area
Short term - Bearish or out for a bullish set up
Vet finished a clear impulse wave, making the June 11 high.
Then made a clear ABC consolidation that fits within a trading channel (TC) perfectly as per Elliott Wave guidelines.
From the June 15 low then price made a strong reaction that has so far broken and held above the TC.
In the lower timeframe below we see the clear 5 wave impulse substructure for wave 1 of a higher a degree and the proceeding ABC consolidation that is marked.
As strong markets often do, price is making an ending diagonal for wave C that often leads to sharp reactions.
From the volume signature we see two significant points:
1 - Overall, the general supply is shrinking, which makes price primed for an upthrust.
2 - in lower timeframe we still see supply not being done though, notice every time there's climactic action (large supply bars that are bought back), the lows are tested and broken with increasing supply.
That's why the ending diagonal idea is quite plausible here. Usually wave 5 of the ending diagonal AND the Phase C of a Wyckoffian trading range(that lead to the uptrend) are preceded with a climactic selling.
So here the bottom line:
There's going to have to be a capitulation large enough to create a "cause" for the rally. It hasn't happened, and it's primed to be here soon.
Once it happens (or the idea of a low become invalidated by a break and test of the trend liens) this is going to be very bullish very fast.
Long term trader / Holder - good accumulation area
Short term - Bearish or out for a bullish set up