Trade Setup: Long Opportunity After Wave C Completion
Once Wave C completes, it presents a strong opportunity to enter a long position, as corrections typically lead to the next impulsive move upwards in the broader trend.
Profit Targets for the Long Position:
Initial Target (T1): $96,500 – A retest of the previous horizontal resistance, aligning with the daily level.
Secondary Target (T2): $99,470 – A revisit of the weekly resistance and a psychological round number.
Extended Target (T3): $104,320 – The golden pocket zone (61.8–65% retracement) of the larger downward move.
Stop Loss Placement:
Place the stop loss below the 88,000 support zone, specifically around $87,900. This level is safely below the expected completion of Wave C and accounts for potential wicks.
Risk-Reward Ratio:
Entering around $92,600 (Wave C’s likely completion zone) provides an excellent risk-reward ratio:
Risk: ~$4,700 (entry at $92,600, stop loss at $87,900).
Reward: $3,900 to $11,720, depending on target level (T1, T2, or T3).
Indicators Supporting the Analysis:
RSI (Relative Strength Index):
Currently oversold, indicating bearish exhaustion.
Watch for bullish divergence as Wave C completes to confirm reversal potential.
Confluence with Key Levels:
Wave C’s potential completion aligns with horizontal support levels and Fibonacci extensions.
Multiple timeframes show significant support in the $92,600–$88,000 range.
Final Thoughts:
The chart suggests a zigzag ABC correction nearing completion, with further downside likely in Wave C to the $92,600–$88,000 range. This presents an ideal opportunity for a long position targeting the next impulsive move upwards.
Summary of Key Levels:
Wave C Completion Zone (Buy): $92,600–$88,000.
Profit Targets (Sell):
T1: $96,500 (Daily resistance).
T2: $99,470 (Weekly resistance).
T3: $104,320 (Golden pocket zone).
Stop Loss: $87,900 (Below key support).
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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.
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.