Identified a potential 5-wave upward impulse move starting from the low in early October.
Wave 3 appears to have just completed, reaching a high of 4,612. This wave is typically the strongest and longest.
The chart projects a corrective Wave 4 is now underway. The blue line indicates a potential path for this correction, suggesting a pullback towards the Fibonacci retracement levels.
Following the correction, a final upward Wave 5 is anticipated, with targets set by Fibonacci extension levels.
Ichimoku Cloud Analysis:
The price is trading above the Ichimoku Cloud (Kumo), which is a strong bullish signal.
The cloud ahead is green and thick, suggesting continued bullish momentum and strong support below the current price.
The Tenkan-Sen (red line) is above the Kijun-Sen (blue line), reinforcing the bullish sentiment.
The Kijun-Sen, currently around 4,441, and the top of the cloud could act as significant support levels during the projected Wave 4 correction.
Fibonacci Levels:
Retracement for Wave 4: The potential support targets for the corrective Wave 4 are based on the Fibonacci retracement of Wave 3. Key levels to watch are:
0.382 level at 4,518
0.500 level at 4,492
Extension for Wave 5: The potential targets for the next upward move (Wave 5) are projected using Fibonacci extensions. Key resistance levels are:
1.500 extension at 4,688
1.618 extension (a common target for Wave 5) at 4,706
A more optimistic target is at the 2.414 extension level of 4,826.
Current Price Action:
The last traded price is $4,544, down 1.02% for the day.
The recent bearish candle (red) after reaching the peak of Wave 3 supports the idea that the corrective Wave 4 may have begun.
Potential Market Scenario
Based on this chart, the anticipated scenario is:
Short-term: A price correction or consolidation (pullback). The price may drop to test support levels around $4,518 or $4,492.
Medium-term: If the support holds and the Elliott Wave count is correct, the price is expected to resume its upward trend to begin Wave 5, targeting the resistance area between 4,688 and 4,706.
Wave 3 appears to have just completed, reaching a high of 4,612. This wave is typically the strongest and longest.
The chart projects a corrective Wave 4 is now underway. The blue line indicates a potential path for this correction, suggesting a pullback towards the Fibonacci retracement levels.
Following the correction, a final upward Wave 5 is anticipated, with targets set by Fibonacci extension levels.
Ichimoku Cloud Analysis:
The price is trading above the Ichimoku Cloud (Kumo), which is a strong bullish signal.
The cloud ahead is green and thick, suggesting continued bullish momentum and strong support below the current price.
The Tenkan-Sen (red line) is above the Kijun-Sen (blue line), reinforcing the bullish sentiment.
The Kijun-Sen, currently around 4,441, and the top of the cloud could act as significant support levels during the projected Wave 4 correction.
Fibonacci Levels:
Retracement for Wave 4: The potential support targets for the corrective Wave 4 are based on the Fibonacci retracement of Wave 3. Key levels to watch are:
0.382 level at 4,518
0.500 level at 4,492
Extension for Wave 5: The potential targets for the next upward move (Wave 5) are projected using Fibonacci extensions. Key resistance levels are:
1.500 extension at 4,688
1.618 extension (a common target for Wave 5) at 4,706
A more optimistic target is at the 2.414 extension level of 4,826.
Current Price Action:
The last traded price is $4,544, down 1.02% for the day.
The recent bearish candle (red) after reaching the peak of Wave 3 supports the idea that the corrective Wave 4 may have begun.
Potential Market Scenario
Based on this chart, the anticipated scenario is:
Short-term: A price correction or consolidation (pullback). The price may drop to test support levels around $4,518 or $4,492.
Medium-term: If the support holds and the Elliott Wave count is correct, the price is expected to resume its upward trend to begin Wave 5, targeting the resistance area between 4,688 and 4,706.
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.
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.