We may be nearing the end of our wave (b) with an ending diagonal as seen here. This goes back to some of my earlier predictions of a rally to $14500-$17500 and would fit this narrative nicely. It is typical, however, for wave 5 of ED's to overthrow or overextend past the trend lines so play it safe here. If this is correct, however, we can expect a strong (c) wave up after we find support, especially if wave (c) is a multiple greater than 1 of wave (a), i.e. 1.618xA=C.
Comment
⋅
Pushed above bottom trend-line back into the diagonal with a 5 wave impulse, looking good so far.
Comment
⋅
Starting to think this is the more realistic wedge we're dealing with. An ending diagonal for our wave c. Note it is not uncommon for wave 5s in diagonals to fall short or overshoot the support trend line.
@tammy007, I'm no not a financial advisor and cannot recommend what you do with your money. I will say that I have closed my short positions fully and have opened a small position to start building into. Emphasis on small. My stop loss is below $7500.