Elliotical Approach to US30 Short.Hello traders!
1. We see a 5-wave descent of US30 market. This is the beginning of the downtrend that has been expected since our first analysis on 9th January . Ideas attached.
2. The invalidation level is very far. If someone hasn't taken the initial trade on 16th January, best wait for a trade with a better risk reward. Those already in this trade since 16th Jaunuary could risk some for a larger profit. Extensive risk management advised as the protective stop will be very far.
3. At present, there are two variations in count that seem possible. The ABC correction that we see can be wave A of Wave (i) or Wave (ii) itself. More unfolding of the markets required.
4. We have an important resistance zone at 33400-33500 .
5. There is a 38.2 percent retracement level.
6. Even though the market is bearish, we can expect a longer, more complex correction because the market has shown a quick fall of over 1300 points. But, at the same time, not a very deep correction as the bulls have already pushed the market enough for a long time now.
7. Use of Elliotically correct protective stops is advised.
Do use proper risk management.
Happy Trading!
Profits,
Market's Mechanic.
