A Perfect Storm: Targets
It looks like we are in the B-C leg of an ABC Elliot Wave correction. The A-B leg was the bull trap, and now it looks like we are resuming the doward trend to retest the $321 A leg correction low. If we break this (likely), it seems further movement down to the $267-$296 range is possible.
Some numbers:
- Wave B is close to 0.618 of Wave A as required
- Fib. 0.382 retracement of ((i))-((v)) wave coincides with $296
- Fib. 0.5 retracement of ((i))-((v)) coincides with $267
Some possible wave ABC correction targets:
- Wave C fib. 0.618 x wave A coincides with $321 (already touched)
- Wave C fib. 1.0 x wave A coincides with $296
- Wave C fib. 1.236 x wave A coincides with $280
Of particular interest is $296 as that coincides with both the fib. 0.382 retracement and fib. 1.0 x wave A extension.
However, Elliot Wave Theory guidelines suggest ABC wave corrections should end near the end of wave 4 which is $267. Given this, if we break $321, target is between $267 and $296.
Keep an eye out for a bullish reversal pattern in the entire region ($265-$321). And watch for a possible fake reversal at $321, which then continues down to sub 300’s.
Some numbers:
- Wave B is close to 0.618 of Wave A as required
- Fib. 0.382 retracement of ((i))-((v)) wave coincides with $296
- Fib. 0.5 retracement of ((i))-((v)) coincides with $267
Some possible wave ABC correction targets:
- Wave C fib. 0.618 x wave A coincides with $321 (already touched)
- Wave C fib. 1.0 x wave A coincides with $296
- Wave C fib. 1.236 x wave A coincides with $280
Of particular interest is $296 as that coincides with both the fib. 0.382 retracement and fib. 1.0 x wave A extension.
However, Elliot Wave Theory guidelines suggest ABC wave corrections should end near the end of wave 4 which is $267. Given this, if we break $321, target is between $267 and $296.
Keep an eye out for a bullish reversal pattern in the entire region ($265-$321). And watch for a possible fake reversal at $321, which then continues down to sub 300’s.
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