In this chart, I’ve mapped a potential Elliott Wave structure, currently unfolding within a corrective descending channel. Price action appears to have completed waves (1) through (4), with wave (5) in progress or imminent. If the structure holds, we may expect further downside pressure in the coming weeks.
Key insights:
Wave (4) has tested the upper boundary of the channel and failed to break out, suggesting a continuation of the bearish trend.
The projected path for wave (5) is marked, indicating potential downside targets.
Fair Value Gaps (FVG) along the chart align with prior liquidity zones and may serve as magnet levels for price retracement.
Support Zones: I’ve highlighted two key support levels between $2,700 – $2,600 and $2,450 – $2,350, where buyers may step in if price reaches those levels.
RSI currently shows weakening momentum near the midline, suggesting no immediate bullish divergence to reverse the trend.
While the overall long-term trend remains bullish, this chart suggests a short- to medium-term correction is unfolding, offering potential opportunities for swing shorts or re-entries at lower support zones.
Key insights:
Wave (4) has tested the upper boundary of the channel and failed to break out, suggesting a continuation of the bearish trend.
The projected path for wave (5) is marked, indicating potential downside targets.
Fair Value Gaps (FVG) along the chart align with prior liquidity zones and may serve as magnet levels for price retracement.
Support Zones: I’ve highlighted two key support levels between $2,700 – $2,600 and $2,450 – $2,350, where buyers may step in if price reaches those levels.
RSI currently shows weakening momentum near the midline, suggesting no immediate bullish divergence to reverse the trend.
While the overall long-term trend remains bullish, this chart suggests a short- to medium-term correction is unfolding, offering potential opportunities for swing shorts or re-entries at lower support zones.
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.
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.