Channel B is a typical health uptrend. But things get out of control and went euphoric producing a Head & Shoulder at extended Channel A. Price fell back to Channel B and launched another break out but failed due to double resistance of neckline which is also Channel B resistance.
Subsequently, it was a one sided affair from the bears hitting price straight below channel B and culminated momentarily at downtrend channel bottom.
Using the simplest EW wave analysis i understand, i am seeing the maturing of wave 4. As highlighted in the blue resistance region, which arises from confluence of downtrend channel top + Channel B bottom + horizontal resistance. If there is a break out and price go higher, 200ema will be a good rejection point. If blue resistance is very strong, once price started to head lower.. i would consider wave 4 completed.
Essentially i am anticipating a final wave 5 to be in play which could be leveled around 77 or lower, by then we would have a lower low in price and higher low in both indicator to give a stronger signal to long.
Subsequently, it was a one sided affair from the bears hitting price straight below channel B and culminated momentarily at downtrend channel bottom.
Using the simplest EW wave analysis i understand, i am seeing the maturing of wave 4. As highlighted in the blue resistance region, which arises from confluence of downtrend channel top + Channel B bottom + horizontal resistance. If there is a break out and price go higher, 200ema will be a good rejection point. If blue resistance is very strong, once price started to head lower.. i would consider wave 4 completed.
Essentially i am anticipating a final wave 5 to be in play which could be leveled around 77 or lower, by then we would have a lower low in price and higher low in both indicator to give a stronger signal to long.
