Corrective wave C is coming to the final phase
ZRX is clearly in the corrective pattern. From ATH in mid-April (2.38) price went down to 1.24 when Elliott wave A has ended. From that point onwards it bounced back to 2.22 which is exactly 0.9 FIB retracement (by the book) which marked as the end of corrective wave B (also indicating this is regular flat). From that point onwards corrective wave C started and currently the lowest point was 1.55 which is exactly 0.618 FIB retracement of AB wave where we are now.
Going forward I see three option:
1. we have already reached lowest point and price might increase to 2/1 Gann fan line; if Gann line is not broken (in max. three attempts) that we will see another decrease (if price goes above 2.02, than we are most likely in see new ATH)
2. If price will go below 1.55 than it will drop to 1.24. At this point we will see how horizontal support is strong. Like above, if at that level 2/1 Gann fan line is broken (in max. three attempts) new impulse wave has started; if not, then we will see another decrease
3. If price will go below 1.24 than it should stop at 1.08. In this case it is very likely that price will not decrease further.
Since there were strong negative signals on the market in the last 24 hours, i believe that option 2 and 3 are more realistic. This will be clear in next 3 days.
Going forward I see three option:
1. we have already reached lowest point and price might increase to 2/1 Gann fan line; if Gann line is not broken (in max. three attempts) that we will see another decrease (if price goes above 2.02, than we are most likely in see new ATH)
2. If price will go below 1.55 than it will drop to 1.24. At this point we will see how horizontal support is strong. Like above, if at that level 2/1 Gann fan line is broken (in max. three attempts) new impulse wave has started; if not, then we will see another decrease
3. If price will go below 1.24 than it should stop at 1.08. In this case it is very likely that price will not decrease further.
Since there were strong negative signals on the market in the last 24 hours, i believe that option 2 and 3 are more realistic. This will be clear in next 3 days.
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