EWT: High confidence Trade-setup for ACE Construction.ACE construction is forming a contracting triangle of waves ((4)).
To draw parallel lines, I have connected wave ((2)) & wave ((4)) and merged with wave ((3)).
Wave ((1))
- Five wave impulse
wave ((2))
- Sharp correction
- 50% retracement of wave ((1))
Wave ((3))
- Five wave impulse
- Power extend
Wave ((4))
- Contracting triangle
- sideways correction
- 38.2% of wave ((3))
Wave ((5))
- Wave ((5)) can be equal to wave ((1)).
- It can end near a 1.618% extension of wave ((4)).
We can expect the following targets of 273 - 292 - 320+ after the breakout of the B-D trendline.
In case if price breaks the A-C trendline to completed wave E, it can fall up to 139 . According to Elliott wave, wave (4) ends near the lower degree of wave 4.
Price action Perspectives:
In this chart, we can see the crossover of multi-exponential moving averages. And the price is formed a value area for more than two months.
If the price breaks out of this value area range, we may see an upward move for our targets.
