1) Towards the end of 2012, price action created a stable resistance line with at least 3 touches, illustrated by the red dashed line.
2) I have some amateur wave counting labeled, the 100% extension of wave 1 from the end of wave 2 lands at the aforementioned red dashed line.
3) We have 3 dashed blue trend lines, 2 of which create a channel, and the 3rd one angled up to create a wedge-like shape that is putting the squeeze on price action. This wedge comes together just above the red dashed line.
4) ASSUMING the resistance area holds, the following 3 fibs are in the same vicinity to form a target area for wave 4
4a) 76.4% extension of wave 1
4b) 23.6% retracement of wave 3
4c) 61.8% extension of wave 2 from the assumed top of wave 3
Addendum: 100% fib extension of sub wave 1 from the end of sub wave 4 (within the labelled wave 3) also gives a target in the same price region for end of wave 3.
2) I have some amateur wave counting labeled, the 100% extension of wave 1 from the end of wave 2 lands at the aforementioned red dashed line.
3) We have 3 dashed blue trend lines, 2 of which create a channel, and the 3rd one angled up to create a wedge-like shape that is putting the squeeze on price action. This wedge comes together just above the red dashed line.
4) ASSUMING the resistance area holds, the following 3 fibs are in the same vicinity to form a target area for wave 4
4a) 76.4% extension of wave 1
4b) 23.6% retracement of wave 3
4c) 61.8% extension of wave 2 from the assumed top of wave 3
Addendum: 100% fib extension of sub wave 1 from the end of sub wave 4 (within the labelled wave 3) also gives a target in the same price region for end of wave 3.