The market is due to a break out really soon. The volume has been very low the past days. What does that tell us? It tell us that we will expect a big movement soon. <
If we use Elliot waves to determine where the move is going to be lets look at what we had so far. We just had the 1st wave followed by an ABC correction. We should now have a 3rd wave coming up.
The 3rd wave consists of 5 subwaves, we we have just finished the 2 subwave, because we've gotten a bounce of the 0.756 Fibonacci, where wave 2 usually ends.
It is really important that 2nd subwave holds, if it dosnt the subwavecount would be invalidated.
If the price goes below 3500, the whole 5 waves would be invalidated.
That would be the invalidation, lets look on how it would go if this succeed. We then would be looking for a 3rd wave touch at 3830 (1.618), and followed by a wave 4 restracement and then hitting the .2 or 2.272 fib at 3900-3950.
If we use Elliot waves to determine where the move is going to be lets look at what we had so far. We just had the 1st wave followed by an ABC correction. We should now have a 3rd wave coming up.
The 3rd wave consists of 5 subwaves, we we have just finished the 2 subwave, because we've gotten a bounce of the 0.756 Fibonacci, where wave 2 usually ends.
It is really important that 2nd subwave holds, if it dosnt the subwavecount would be invalidated.
If the price goes below 3500, the whole 5 waves would be invalidated.
That would be the invalidation, lets look on how it would go if this succeed. We then would be looking for a 3rd wave touch at 3830 (1.618), and followed by a wave 4 restracement and then hitting the .2 or 2.272 fib at 3900-3950.
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wave 2 retraced more than expected, but we should see a upward move from here. The lack of volume is making the fibs, too hard to read, but since we got a strong bounce of the 0.786 fib we should see a impulsive movement up to 3900