Descending Triangle - Reversal Immenent
Waves ((1)) and ((2)) (green circle) have completed according to this wave-count.
Wave ((3)), an impulse wave, may soon follow.
An up-trend is likely if we manage to stay above the wave ((1)) low.
Fibonacci extension levels of wave ((1)) reveals areas of resistance on the way up.
Note that the third wave is usually the longest and never the shortest in a typical 5 wave impulse. So, a reasonable target for it to reach would be a 1:1 extension for a conservative approach, or a 1.618 extension for a more aggressive target.
Still, we should watch out for some other possible scenarios too. Some important ones to take note of include: an extension of the (C) wave, a breakout of the descending triangle, or a continuation of the downtrend below the wave ((1)) low.
Wave ((3)), an impulse wave, may soon follow.
An up-trend is likely if we manage to stay above the wave ((1)) low.
Fibonacci extension levels of wave ((1)) reveals areas of resistance on the way up.
Note that the third wave is usually the longest and never the shortest in a typical 5 wave impulse. So, a reasonable target for it to reach would be a 1:1 extension for a conservative approach, or a 1.618 extension for a more aggressive target.
Still, we should watch out for some other possible scenarios too. Some important ones to take note of include: an extension of the (C) wave, a breakout of the descending triangle, or a continuation of the downtrend below the wave ((1)) low.
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