Global inspection suggests that correction (monthly timeframe) has not yet reached even the minimum targets (marked with red lines on a logarithmic scale).
Local inspection suggests that correction is emerging in a double zigzag formation:
- First zigzag (W) reached the lowest point of $0.262
- Right now ugly wave (X) is forming (retraced 0.618 of wave (W))
- Expecting one more zigzag (Y) with least the same length of wave (W) potentially reaching $0.18 (aligns with weekly 50 EMA) with an on the way pullback near $0.28 (aligns with daily 200 EMA).
Local inspection suggests that correction is emerging in a double zigzag formation:
- First zigzag (W) reached the lowest point of $0.262
- Right now ugly wave (X) is forming (retraced 0.618 of wave (W))
- Expecting one more zigzag (Y) with least the same length of wave (W) potentially reaching $0.18 (aligns with weekly 50 EMA) with an on the way pullback near $0.28 (aligns with daily 200 EMA).
Note
We now have wave (A) and (B) completed within wave (Y).
I expect wave (C) to land near $0.24 price mark:
1. Wave C in ABC correction should reach further than wave A (lower than $0.26 in this case)
2. $0.24 matches with monthly timeframe 0.382 fibo retracement (minimum level to consider valid correction)
3. $0.24 is exactly 1.272 (in zigzags wave C usually longer than wave A)
4. $0.245 is a top of margin of of a monthly Average True Range channel.
Trade active
Current pullback seems like a great short entry opportunity.Note
Update: Wave B extended to retrace 0.618 of wave A. If you wanted to short, this is a great opportunity. Upcoming dip also aligns with USA inflation data today.
Trade closed: stop reached
Apparently we are in an extremely bullish market, so the potential for correction was realized earlier than I expected. sorry for that, I suggest opening a long and waiting for the previous highs to be reached. 
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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.