Bullish Scenario
Price is clearly trading within an ascending channel. If you look at where the price is now, it looks like it is getting rejected by the midline. On the other hand, it looks like price is trading according to Elliot wave structures with waves 1,2, and 3 having been completed. If the price holds here and acts as support then we can conclude that wave 4 is over and a wave 5 is on its way. Now I’ve drawn wave 5 target as the top of the channel, but Elliot waves and Fibonacci ratios allow the price to go well above the ascending channel and break through. So far I do not see any strength in upside movement, and I think it’s because I’m unsure of whether wave 4 is completed or not. Anyway, if everything goes smoothly, the target is above the ascending channel or the top of the channel. I also have a bearish scenario in mind, which I will share in a separate post.
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