This EW count suggests a possible sub-wave iv bounce before possibly heading down on sub-wave v to complete the 5-3-5 ABC correction of the larger degree. As long as we stay above the wave (1) low, there may be an uptrend following this correction. However, if we retrace below this level then this would signal the continuation of the bearish trend.
This is just an idea and not financial advice.
- Fibonacci retracement levels for sub-wave iv are shown in green. If we manage to break above the wave i territory, then this would be a bullish signal.
- Fibonacci extension levels for wave (C) are shown in the light red.
- Fibonacci retracement levels for the larger degree ABC correction are shown in red, which could also be the low for wave (C). A retracement past the 100% level would signal the continuation of the bearish trend, as mentioned above.
This is just an idea and not financial advice.
Comment:
Looks like sub-wave iii has finally completed bouncing off the 0.65 support level (obtained from the recent (A) wave). The MACD and RSI indicators also lead us to believe that we are now on the sub-wave iv (correction) before possibly heading further down for sub-wave v. Possible swing highs for the sub-wave iv correction are shown by the green fib retracement lines, acting as resistances. Though, if we do manage to uptrend back into the sub-wave i territory, then that would be considered a very bullish sign.
