With today's price action, it seems we have found a short-term bottom. We see a pin bar candle near support, indicative of buyers stepping in. Further, we see this pin bar is supported by volume. This means that not only have shorts begun to cover, but longs have entered the trade as well. Using Fibonacci levels, we can expect wave 4 to top between 424 and 430. I would expect to see the market rise to the latter levels as it is former support. Once this level is achieved, shorts are expected to resume the trend to the downside. The target to the downside is projected to be 395 or lower.
Trade active:
Price reached the wave 4 pullback resistance level and has currently resumed the downward move. Any close above the pink zone (~430) will likely be a turning point and my stoploss.
Comment:
Would consider adding to the short if a new swing high is confirmed.
