We can see a Flat correction playing out that could have topped at 6930.
If we see price go down now and break below the middle channel line followed by waves (iv) low, we can consider the top is in place.
The problem here is we don't have clear divergence between wave (iii) and (v) of red wave C, which is normally the case when an impulsive wave comes to an end.
The fact that we have a slight overlap between wave (iv) and orange wave b of (ii) could indicate that wave (iii) is actually a subwave 1 of (iii),
which makes this move up into a big impulsive wave that can take us up to at least 7025, the 161.8% Fib projection of red wave A.
In this case, we should remain above 6810 and have only a partial 3 wave retracement of current wave (v).
If we see price go down now and break below the middle channel line followed by waves (iv) low, we can consider the top is in place.
The problem here is we don't have clear divergence between wave (iii) and (v) of red wave C, which is normally the case when an impulsive wave comes to an end.
The fact that we have a slight overlap between wave (iv) and orange wave b of (ii) could indicate that wave (iii) is actually a subwave 1 of (iii),
which makes this move up into a big impulsive wave that can take us up to at least 7025, the 161.8% Fib projection of red wave A.
In this case, we should remain above 6810 and have only a partial 3 wave retracement of current wave (v).
Note
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.