The rising channel is still intact, which means we still have two possible options at this point. The first is, that a more complex wave iv correction is ongoing from 120.12 and will be resolved in on final rally higher towards the ideal target at 121.28. Secondly we could already have seen wave 3 end at 120.71 (just below the ideal target at 121.28) and wave 4 is ongoing. This wave 4 will likely take us down to 113.54, which marks the bottom of wave four of one lessor degree. At this stage it is impossible to say which option is the correct one. However. We have to remember that we are in the final parts of wave 3 and even if we see one more rally higher towards 121.28. we are pretty close to a top. Short term we expect support at 118.35 will protect the downside for a test of the 119.40 - 119.50 area, before some real downside pressure takes over again.
We are still looking for one last decline towards our target at 1.5703 as long as minor resistance at 1.5836 and more importantly minor resistance at 1.5855 protects the upside. From support at 1.5703 or upon a break above resistance at 1.5836 we will be looking for the next strong and impulsive rally towards the top at 1.6218 and higher towards 1.6500. Expanded flat corrections normally indicates, that the following impulsive wave will be an extended wave, which in this case means a rally higher to at least 1.6500, where blue wave iii will be 1.618 times longer than blue wave i. However, for now we are still looking for one last decline down to 1.5703 as long as minor resistance at 1.5836 stays unbroken.
Hi Mr T have you any updates on Facebook holding on 30 do you think a move down
ReplyDeleteBest Regards JT
Hi John,
ReplyDeleteYes I'm looking for the next move down as wave c and wave 4 in the bigger picture.
A break below 30.40 will confirm the next move lower.
Kind regards
EWS
based on the corrective move in facebook thus far, where would you expect the C wave to end and complete wave 4?
ReplyDeleteHi Hedgiefundman,
ReplyDeleteI would at least expect a 23.6% correction of wave 3, which would mean a correction down to 29.06. That would be a very small correction. The more normal correction would be a 38.2% correction down to 27.10 and finally the largest correction I would expect would be the 50% correction would take us down to 25.52, which also marks the bottom of wave four of one lessor degree.
A this point I don't expect more than a 38.2%, but it all comes down to form. How will wave c develop and once we have an idea of that we can calculate the most ideal ending point for wave 4.
Kind regards
EWS