ZIL - Third or Fifth Impulse Wave?

Updated

Taking a look at the highlighted regions labeled 2 & 3 colored light blue, you will see resistance and possibly a reversal. If the price action corrects down to the first green buy region from the 2 light blue box then I would assume that this most recent run was the third Impulse wave and the previous wave 3 was actually just the first impulse wave. However, if the price action were to reverse in the 3 light blue box (883-937) down to the second green box then I would assume that the most recent impulse wave was the 5th. Either way a correction is in the works, whether it be a 4th wave or a complete ABC correction set.

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Time Frame: About a week

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The price action could correct between those two downward lines before ever hitting the third light blue box! Thus slowing exiting any long positions would be a good idea over the next few days.

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There is a wedge looking to complete followed by clear bearish divergence in the RSI indicating a reversal into a correction wave. Such was brought to my attention thanks to K3v1nTan and moon910719.

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Well looks like things are going according to plan somewhat. We should be seeing a reversal sometime soon and the RSI is saying the same thing as it is still showing divergence and now overbought.

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I'm 99% sure that this was in fact the 3rd Impulse and not the 5th. That being said we should be on the look out for a decent sized correction wave 4 and a bounce into the actual 5th impulse wave.

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Boy was I wrong :(

TheCryptoLorax

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