The wave iv correction became a new sub-normal correction, as the correction only fell to 113.13 before taking off again in wave v of 3. I expect this wave v of 3 to reach 117.31, where wave 3 will be 1.618 times longer than wave 1, this is a very common extension target and it's the smallest extension we expect for wave 3. Looking at the short term structure for wave v of 3 we are currently in wave iv of iii of 5 and should soon see wave v of iii of 5 higher towards 116.49 before we expect minor correction in wave iv before the last wave higher towards 117.31.
The correction from the 1.6218 high has become deeper than first expected, as we are looking at series of zig-zag corrections. As can be seen on the chart we have already corrected 50% of red wave i and it seems as we need a correction towards the 61.% retracement target at 1.5740 before we can expect the next rally higher in red wave iii of iii. That said, a break above resistance at 1.5988 will confirm that the correction from 1.6218 is over and red wave iii is under way towards 1.6218 as its first target, but longer term I will be looking for rally to at least 1.6515 and probably higher as red wave iii develops.
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