The Primary Wave 2 is completed thus we are potentially seeing wave 3. Wave 3 cannot go higher than wave 2.
The price is also approaching intermediate wave 2 where it should terminate and start wave 3. Again wave 2 cannot go over the area of starting of wave 1.
It is a hat-rick because minor wave 2 cannot cross over the area of where wave 1 started.
All these regions are on the same resistance line, thus potentially we are gearing up for a sixer.
Our potential target is 161.8% Fib level at 110 region.
This is a very high probability because i have consider multiple waves with support and resistance level.
Strategy Short now at CMP or 122.20 with SL at 123 area at EOD basis to target the minor wave 2 start with target of 110 area however we will review this soon and evaluate
Comment
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The price has now moved in the 123 area thus we will have to wait for the candle to close in this area close this position.
Comment
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On a 4h chart the price is testing long term trendline. There is also a strong divergence thus indicating that market may correct.
Comment
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On the 2h chart as you can see 123.687 is the last top which would be a cause of concern. On the daily chart though we can see that 124.069 is the top where started the Intermediate wave 2 started. Thus wave 2 cannot overlap the region where wave 1 started. Thus our hard stop-loss would be 124.069.
2h chart
D chart
Trade active
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Trade closed manually
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Position had to be closed as it hit our hard stop
Comment
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We will re-enter this trade once the candle closes below the 5-8 candle on the closing.