Confluence of Wedges orange and yellows set up a strong buying move which broke the smaller wedge off clean.
But by elliot wave movements we still have some downside to cover and the final touch off must happen at the wedge bottom. The current spike started the 4th elliot wave in the ABC correction (Since 2nd wave was flat the 4th was a strong upside movement).
Selling off to 3k is expected but post 3k will see some range trading as a strong support was found. Upon last Price bounce off from 2700-2800 level we can set targets at 5000 for the Broadening wedge.
We are still in correction phase, this is not a trend reversal.
But by elliot wave movements we still have some downside to cover and the final touch off must happen at the wedge bottom. The current spike started the 4th elliot wave in the ABC correction (Since 2nd wave was flat the 4th was a strong upside movement).
Selling off to 3k is expected but post 3k will see some range trading as a strong support was found. Upon last Price bounce off from 2700-2800 level we can set targets at 5000 for the Broadening wedge.
We are still in correction phase, this is not a trend reversal.
Comment:
Please also keep a lookout for 3400 for a bounce with strong volume, the last wave might be a short one.
Comment:
Price reversed perfectly off the trendline top. Now to watch for 3400-3450 level for any bounces.
