CVV.ASX - Corrective Elliot Wave After a Large Impulse WaveThere is a large triangle that has formed on this chart that indicates that a potential push is under way with this one. Shown with the yellow you can see the impulse Elliot wave defied, and then following this two corrective waves within the triangle. I will say, I am not completely happy with how I have defined those corrective waves within the triangle because they're not fitting strict definition, but I have never been happy with charting corrective Elliot Waves so I wont loose sleep over that. Also, this is why we use other signals to guide us, which is that triangle.
If this decides to break out there is a good chance that it will follow another impulse wave which I have roughly drawn in the with second yellow impulse wave, using Fibonacci levels to define targets. One could safely begin to accumulate now, however, I do believe that this has a good chance of throwing back before taking off, if this happens price will likely return to the dotted blue 0.089 level. At which point either the pattern will fail and price will decline or price will push into the impulse wave. So using 0.090 as a stop, or "reassess" level wouldn't be silly. If the fakeout happens, targets are defined with the Fibonacci levels as previously said.
