IWM Long 6/23/24
Updated
Looking for a break through the wave D high of 209.77 and towards 227.13 against the wave C low of 191.34 in wave (C) of {B}.
Note
Price successfully broke through the 209.77 level as expected, confirming the completion of the wave (B) triangle. Wave (C) of {B} should now be in progress against the wave {B} low of 197.41Note
IWM has now fulfilled the minimum expectations of the pattern. It has travelled a distance equal to the widest portion of the triangle, known as the triangle thrust measurement, a common method of estimating the size of a triangle thrust.
That being said, wave (C) may be far from over. Wave (A) was rather sharp so it would be no surprise to see wave (C) develop in an extended manner with exaggerated subdivisions. In this scenario, IWM will probably see new all time highs one last time before the termination of wave (C) and with it wave {B} as well.
Triangles are terminal patterns. They ALWAYS precede the final move within a trend of the same degree. What this means is that once wave (C) of {B} is complete, new ATH or not, IWM will return to levels below at least where the triangle terminated (wave E) at 197.41 and likely much lower in wave {C}. The same knowledge of this aspect of triangles allowed me to call the wave (5) of {5} high in November 2021, the wave E of (X) high in Feb 2023, and the wave (Y) of {A} low in October 2023.
Trade closed: target reached
Note
The July 18 update explained the terminal nature of the thrust from the wave (B) of {B} triangle. Triangles ALWAYS precede the final move in the trend of the same degree and we have now seen the reversal through the wave E of (B) low of 197.41, confirming what is likely to be the final wave {B} high at 228.63. Prices should begin to move toward the wave {A} 161.67 low against 228.63 as wave {C} develops.
Jayce, CEWA
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