Hi traders,
Overview: lets review a note on my Jun 24th update: "Remember, the next wave to develop is wave X, which is a correction inside a correction, so it should be really tricky to count. We can consider several different targets for this wave X such as 4170 range or 4300 range. For now, I am considering it as a zigzag development, but it can be developed in any kind of corrective structures". Until this morning, the structure was perfectly matching our analysis and with the development of waves I, II, and III of leg a of x. However, today's price action invalidated this scenario (it can still be b of (III), however due to the volume on this leg, I prefer the new scenario described below).
Today's Update: I am now considering this wave X being developed as a double zigzag (wxy) or triple zigzag (wxyxz) and right now, we are in (b) of y. Until invalidated, I will stick to this scenario that we are in wave X.
Lower Timeframe Count: I see (b) of y developed as a flat which is near completion. What I have added to the chart is the volume profile of rally from Jun 17th low, and I expect the VAH line to hold as a support. This is also the point of contact with the green trendline and keep in mind that 0.667 retracement of (a) of y is 3806.
Overview: lets review a note on my Jun 24th update: "Remember, the next wave to develop is wave X, which is a correction inside a correction, so it should be really tricky to count. We can consider several different targets for this wave X such as 4170 range or 4300 range. For now, I am considering it as a zigzag development, but it can be developed in any kind of corrective structures". Until this morning, the structure was perfectly matching our analysis and with the development of waves I, II, and III of leg a of x. However, today's price action invalidated this scenario (it can still be b of (III), however due to the volume on this leg, I prefer the new scenario described below).
Today's Update: I am now considering this wave X being developed as a double zigzag (wxy) or triple zigzag (wxyxz) and right now, we are in (b) of y. Until invalidated, I will stick to this scenario that we are in wave X.
Lower Timeframe Count: I see (b) of y developed as a flat which is near completion. What I have added to the chart is the volume profile of rally from Jun 17th low, and I expect the VAH line to hold as a support. This is also the point of contact with the green trendline and keep in mind that 0.667 retracement of (a) of y is 3806.