Hello Traders,
Cann Group Ltd, an Australien Pot stock, topped at AUD 4.55 on January 5, 2018, and declined since to a low at AUD 1.525. The move since looks like a „five-up“ and the correction after a huge and long wave „2“ move.
I have drawn a base-channel to show how price has moved up and down in this channel. The wave „((B))“ high is the upper boundary of the channel and the „((C)) wave met the lower boundary. So this correction is possibly done as per this count. At 1.68 wave „c“ was nearly equal to wave „A“.
If so, the move from 1.525-2.57 is wave „1“ or „a“ of a larger advance, which was retraced to a 0.88 Fibonacci.
Note the overlapping wave „i“ and the level of the wave „A“ low. This fact makes the decline, not an impulsive one, it makes it a corrective one.
The candlesticks tell another story, `cause the weekly candle set a new multi-week low on a closing basis and MACD and STOCH are still declining.
A push above the centerline of the base-channel will be a first hint that a wave „3“ is underway, while a break of the upper line will open the door to the wave ((B)) high @ 2.35!
The validation point for this count is the level of AUD 1.680, the possible wave ((C)) low, and a break below will make this forecast invalid.
Have a great weekend...
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!
Cann Group Ltd, an Australien Pot stock, topped at AUD 4.55 on January 5, 2018, and declined since to a low at AUD 1.525. The move since looks like a „five-up“ and the correction after a huge and long wave „2“ move.
I have drawn a base-channel to show how price has moved up and down in this channel. The wave „((B))“ high is the upper boundary of the channel and the „((C)) wave met the lower boundary. So this correction is possibly done as per this count. At 1.68 wave „c“ was nearly equal to wave „A“.
If so, the move from 1.525-2.57 is wave „1“ or „a“ of a larger advance, which was retraced to a 0.88 Fibonacci.
Note the overlapping wave „i“ and the level of the wave „A“ low. This fact makes the decline, not an impulsive one, it makes it a corrective one.
The candlesticks tell another story, `cause the weekly candle set a new multi-week low on a closing basis and MACD and STOCH are still declining.
A push above the centerline of the base-channel will be a first hint that a wave „3“ is underway, while a break of the upper line will open the door to the wave ((B)) high @ 2.35!
The validation point for this count is the level of AUD 1.680, the possible wave ((C)) low, and a break below will make this forecast invalid.
Have a great weekend...
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!