Descending Triangle Suggests an Incoming Impulse Wave Downwards?
It's hard to tell at the moment if the wave 4 correction has finished or not, but it appears to have completed a complex horizontal wave correction (descending triangle), reaching around the .382 fib retracement level, whereas the wave 2 correction has reached the .618 fib retracement level as a simpler ABC correction (which both works out according to the guideline of alternation: "expect a difference in the next expression of a similar wave").
If wave 4 has in fact completed the correction, then we should expect a crossover on the MACD signaling a downtrend, expect a break below the trendline on the RSI, and expect the price to remain below the "wave 4 high" (which is currently unconfirmed at the moment). If the price trends above the unconfirmed "wave 4 high", then we'll have to believe that the wave 4 correction (i.e. a bounce up before continuing down) is not actually over.
Possible fib extension targets for the impulse wave 5 (extended from wave 3) are shown by the red lines.
Also, possible fib retracement targets for the impulse wave 5 (retracement from the motive wave on the larger degree) are shown by the thicker red lines.
If wave 4 has in fact completed the correction, then we should expect a crossover on the MACD signaling a downtrend, expect a break below the trendline on the RSI, and expect the price to remain below the "wave 4 high" (which is currently unconfirmed at the moment). If the price trends above the unconfirmed "wave 4 high", then we'll have to believe that the wave 4 correction (i.e. a bounce up before continuing down) is not actually over.
Possible fib extension targets for the impulse wave 5 (extended from wave 3) are shown by the red lines.
Also, possible fib retracement targets for the impulse wave 5 (retracement from the motive wave on the larger degree) are shown by the thicker red lines.
