We still need a break above 124.87 to confirm that wave iii of 5 is developing. As long as resistance at 124.87 is not broken we have to accept the possibility, that the rally from 121.56 only is a correction and more corrective action is needed. That said, I do favor the scenario, telling us that wave iii of 5 is developing and if this is the case, then we should expect support at 123.48 and more likely support at in the 122.85 - 123.15 area to protect the downside for the rally above 124.87 and even more importantly a break above 125.79 to confirm wave iii of 5 towards 133.54.
We clearly needed more filling of the gap and with the gap more of less filled now we should be looking for a powerful decline below 1.5584 soon. As minor wave ii of red wave C was an expanded flat we should expect an extended wave iii down, which will call for a decline to 1.5312 and if this is the case we should expect the final wave v of red wave C to end close to our ideal target at 1.5200. Short term I'm looking for resistance in the 1.5691 - 1.5708 area to protect the upside for a break below 1.5620 and more importantly below 1.5584 to confirm the decline towards 1.5312.
No comments:
Post a Comment