It seems like days since I began looking for w.iv circle to unfold. The price action on the 120 min chart level appears to finally, yet violently, be putting together a sideways move. Earlier today I tweeted that wave overlap had occurred and expected the entire move from w.iii circle or 1097 to be fully retraced when the pattern completed. I stand firm in that assessment.
Also note that w.iv circle looks like a flat correction (3-3-5). However, any corrective pattern that begins with a three wave structure could also develop into a triangle or combination. Therefore, we'll remain on guard to these alternate possibilities.
Should the flat correction play out, it's the perfect set up where w.c of w.iv circle = w.a at 1192.25 and is in agreement with the most common .382 , Fibonacci retracement, for 4th waves at 1191.25.
One caveat is that on lower time frames, w.(b) may not be completed. If it isn't , then I may have to revise my upside targets.
A loss of 1097 before reaching beyond the w.(a) extreme of 1175.5 would negate this view and the pattern would need to be reassessed.
In conclusion , the trend remains down with the full expectation that a new low will occur and that the Bear Raid is incomplete.
Best of Trading.
No comments:
Post a Comment