A Perfect Storm: Deep Correction Before Long-term Climb
Updated
It appears we have completed 3 wave levels: wave (v) of a larger degree wave v of a larger degree wave 3. A fib. 1.618 extension of the larger wave 1 would put us around the $384 price point, where we should have expected a larger degree wave 4 correction which is happening now (Sept. 1, 2017).
In Elliot Wave Theory, one of the general guidelines for predicting the end of the fifth wave is that it needs to end with momentum divergence. And that’s exactly what happed at $390, with a rising wedge formation, and the expected downward breakout. All coinciding with the ends of these 3 waves. A perfect storm.
In addition to this, Elliot Wave Theory forecasts that our current subdegree wave v should end around $380 (2.0 extension of wave i) and larger degree wave 3 should end around $382 (fib. 1.618 extension of wave 1). It seems they were off just a little with the correction occurring around $394. But they are in close proximity to one another with these guideline fib. extension values. An additional strong signal.
As can be seen with current price action, we require a correction before beginning the larger degree wave 3, which could eventually take us to over $600 in the coming months. But first we will need to correct for the abc wave down to wave iv levels (as low as $267) or the wave 4 correction ($312). This area seems to be the target correction zone for beginning the larger degree wave 3 ($267-$312).
Be careful not to caught prematurely in a bull trap as we proceed down the corrective abc wave from the end of wave a ($347) back up to the end of wave b ($365-$374), and then back down to the target zone ($267-$312).
Incidentally, the fib. retracement tool for wave 3 brings us exactly to 0.382 ($311) and near 0.618 ($267), another supportive indicator.
Not advice, but just sharing ideas.
In Elliot Wave Theory, one of the general guidelines for predicting the end of the fifth wave is that it needs to end with momentum divergence. And that’s exactly what happed at $390, with a rising wedge formation, and the expected downward breakout. All coinciding with the ends of these 3 waves. A perfect storm.
In addition to this, Elliot Wave Theory forecasts that our current subdegree wave v should end around $380 (2.0 extension of wave i) and larger degree wave 3 should end around $382 (fib. 1.618 extension of wave 1). It seems they were off just a little with the correction occurring around $394. But they are in close proximity to one another with these guideline fib. extension values. An additional strong signal.
As can be seen with current price action, we require a correction before beginning the larger degree wave 3, which could eventually take us to over $600 in the coming months. But first we will need to correct for the abc wave down to wave iv levels (as low as $267) or the wave 4 correction ($312). This area seems to be the target correction zone for beginning the larger degree wave 3 ($267-$312).
Be careful not to caught prematurely in a bull trap as we proceed down the corrective abc wave from the end of wave a ($347) back up to the end of wave b ($365-$374), and then back down to the target zone ($267-$312).
Incidentally, the fib. retracement tool for wave 3 brings us exactly to 0.382 ($311) and near 0.618 ($267), another supportive indicator.
Not advice, but just sharing ideas.
Note
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