Todd asked if there is another target beyond 25.11. The answer is YES!
If we get a clear break above 25.11 we should be looking for the extension of wave 3 to take us higher to 28.83. However looking at the structure of the rally of the 17.53 low (wave iv of 3) I would not expect a rally much beyond 25.11. That said we will have to stay flexible and a clear break above 25.11 - say above 26.00 will argue for a continuation higher towards 28.83.
The extremely bullish Count will be that the rally from 9.35 to 23.44 only marked wave i and the correction from 23.44 Down to 17.53 was wave ii and wave iii is just getting started. This Count would call for a wave iii rally towards at least 40.35.
Thanks EWS. If 25.11 is the high, what kind of retracement do you expect?
ReplyDeleteHi Todd
DeleteYou are most welcome.
I would look for a correction towards the low of wave iv, which comes in at 17.53, but just before that you have the 38.2% retracement at 19.08 and the 50% retracement target just below at 17.08. So that should prove a strong support-zone.
How ever I would not close my position near 25.11. I would play safe a use a trailing stop, just in case this move continues much higher.
I would place my stop at 23.50. That would be just below the recent consolidation on the hourly chart. That way you would have a good indication, that a top might ´be in place and you would protect most of your profit. A more safe stop would be at 21.45, but I think you would give up way to much profit with that stop.
Kind regards
EWS
Thanks EWS. I am starting to believe this could be a wave 3. It's acting like a wave 3 too.
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