Price ripped through the buy area and looks likely to be a 3 wave correction and has also recovered somewhat.
Any push towards and subsequent rejection of the green area would satisfy the criteria for a long.
Expecting wave 4 to complete with a push into supply before terminating at 1.2210 region.
This will complete the 5th wave of C leg of the corrective move.
This will then result in either a 3 or 5 wave move up if the 1.2210 area holds.
Divergence in RSI at the completion of 5th wave of C leg will be a nice touch
Buy area in green. Up move will either be in 3 waves or 5. Correction may possibly be more complex as not enough time has seemed to pass.
Divergence between price and RSI will likely occur and if it does, lends more weight to the long bias
Charts indicate buy and sell areas. Consolidation currently establishing value and expecting weakness at extremes of value area (for shorts - counter-trend) and expecting buyers to step in green area for continuation of trend.
Series of 3s. Expecting a zig-zag correction for Z into 61.8% pull back of impulse leg.
61.8 % retracement of impulse leg also price territory of wave 4 of prior impulse leg 50% retracement also a possibility as it is wave 2 of extended 5th wave of prior impulse leg an an area of value.
Looking for a possible long in this area
Possible short on failed re-test of the high.
A new high and divergence in the RSI would be an attractive short
With 5th wave being an extension, price is likely to decline to the 50% retracement of the impulse move which is also the price territory of wave 2 of 5 of the impulse leg.
Lower trendline of the channel combined with the short blue horizontal line within the blue circle. Awaiting rejection of this area for a short to the 61.8% retracement level. This was the last area of significant value
Preferred count highlights another smaller expanding flat as a wave 2 of the C wave in the expanded flat.
0.382 retracement of the first wave up seems to be the earliest point the correction is likely to terminate at.
Preferred wave count would be invalid below the low formed on Friday after the NFP release as wave 2 should not retrace beyond the start of wave 1
