The momentum indicator has now gone positive and has been above the 14day average for a little while despite the moves down. Wave B looks to be either ending or has ended. It may drop a little bit further, especially as it stands out to be an obvious BUY trade and so stop hunters will more than likely kick in and take the price below the current supply zone.
Comment:
Tricky position now as price has rebounded out of the supply zone immediately but the momentum indicator has moved sideways so perhaps there will be one more blip down back into the supply zone. Now that price is above the 200EMA I am reluctant to buy only because I prefer to buy at a "discounted" price (i.e. either below or on a fast moving average). I also am not certain of next move. If in doubt...stay out.
Comment:
Price now back in to the supply zone and once again a tricky position. Momentum is negative and just over the 14MA which falls outside of my trading strategy. Volatility is above average for the move down as well. My gut says there is a chance for the price to go back up but the strategy says stay out for now. So decision made.
Comment:
Price did come down and close outside zone. The momentum indicator has also come down and is now quite negative although there is still good divergence from the 7th March low. Lastly, price has closed on the exact last "selling" wick from back on 24th Nov 2022. That is very interesting and so I will not discount the possible path idea just yet. It is not unusual for a wave B to go lower than the start of a wave A. I will continue to monitor daily.
Comment:
Price back up and now stopped dead on 200EMA. Momentum is still negative and on the 14MA. That's outside my trading parameters. Will keep an eye on what sort or rejection there is from the 200EMA and take it from there. Entering a BUY at a discounted price would be preferred.
Comment:
Not much rejection but the momentum indicator is still negative and below the 14MA. Therefore outside my strategy. Just have to be patient. If price takes off, that's one missed but there will always be another trade around the corner. Stick to the plan.