Tech analysis based on Elliott wave theory and basic support and resistance figures.
elliott wave theory states the following must occur for the theory to be valid:
1. Leg 2 can not retrace beyond the beginning of leg 1 (confirmed)
2. Leg 4 can not retrace further than the end of leg 1 (in motion not confirmed)
3. Leg 3 can not be the shortest in comparison to leg 1 and leg 5 ( in motion not confirmed)
Note: all three laws must be true in order to confirm a full EW
With support at 29.64 we might see a small micro move upwards before a break further to the downside.
If we can not break 29.64 to continue our 3rd leg down we will violate one of the essential laws voiding the theory by having a 4th leg that supersedes the top of leg 1.
However, this is still considered a downtrend unless we break the trend line.
I would wait to see where leg 3 ends and if we break the support i would consider a call option at the reversal.
elliott wave theory states the following must occur for the theory to be valid:
1. Leg 2 can not retrace beyond the beginning of leg 1 (confirmed)
2. Leg 4 can not retrace further than the end of leg 1 (in motion not confirmed)
3. Leg 3 can not be the shortest in comparison to leg 1 and leg 5 ( in motion not confirmed)
Note: all three laws must be true in order to confirm a full EW
With support at 29.64 we might see a small micro move upwards before a break further to the downside.
If we can not break 29.64 to continue our 3rd leg down we will violate one of the essential laws voiding the theory by having a 4th leg that supersedes the top of leg 1.
However, this is still considered a downtrend unless we break the trend line.
I would wait to see where leg 3 ends and if we break the support i would consider a call option at the reversal.