Overview: let's review a few key points of the update of yesterday:
Update: I have to repeat one more point from the previous updates: "the price action is nicely following our expectations."!
Let's look at the hourly chart:
In wave b of (III), we formed a lower low as the second wave X, then peaked at 4072.75 and finally broke the upward channel decisively.
Now, I believe today we formed wave 1 of c of (III).
What is my target for wave 2 of c of (III)?
Let's go to the 15 min chart: it seems the market loves to make nested wxyxz corrections and head & shoulders on this bearish phase.
There are 4 ways to have an idea of what can be wave 2 peak (4028-4031.5):
1) Retracement of wave 1 of c of (III): 4009.25, 4018.75, 4028, 4031.5, and 4036.75
2) Volume profile of wave 1 of c of (III): based on the volume profile, we can consider these targets: 4020.25, 4032.75 (note that these two numbers are not exact)
3) The price target of the head & shoulder pattern: 4026
4) Support and resistance levels: 4017, 4029.25, and 4039.75
Finally, this is the structure of wave 2 of c of (III):
- I believe wave b is not complete yet and I expect it to turn into a triple zigzag retesting 4076.75 area.
- If we break the upward channel decisively, then wave b is complete and we have started wave c of (III).
- Note that based on the price target of the head & shoulders pattern, I believe the second wave X is yet to be complete as shown on the 5-min chart.
Update: I have to repeat one more point from the previous updates: "the price action is nicely following our expectations."!
Let's look at the hourly chart:
In wave b of (III), we formed a lower low as the second wave X, then peaked at 4072.75 and finally broke the upward channel decisively.
Now, I believe today we formed wave 1 of c of (III).
What is my target for wave 2 of c of (III)?
Let's go to the 15 min chart: it seems the market loves to make nested wxyxz corrections and head & shoulders on this bearish phase.
There are 4 ways to have an idea of what can be wave 2 peak (4028-4031.5):
1) Retracement of wave 1 of c of (III): 4009.25, 4018.75, 4028, 4031.5, and 4036.75
2) Volume profile of wave 1 of c of (III): based on the volume profile, we can consider these targets: 4020.25, 4032.75 (note that these two numbers are not exact)
3) The price target of the head & shoulder pattern: 4026
4) Support and resistance levels: 4017, 4029.25, and 4039.75
Finally, this is the structure of wave 2 of c of (III):
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.