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Pedro, is this EW correct for an ABC correction?
Anyways, looking for drop to 240 then your Spring pop to 290 before the final plunge to 200…
This is all based on symmetrical moves…
I blame JenkinsLane for my fixation on biotechs 🙂
Ranchida Nov 13th XBI post…
Equates to my first target denoted…
I’m only a pretend EW techie. Ranchida does the fibs and more. (And he’s looking at LABD too)
But I can critique if needed. This looks plenty respectable to me, not seeing the larger picture of course.
When you have ABCs internal to a correction, the larger waves are WxYxZ’s etc.
So first ABC = W …. rally to X …. another ABC to Y.
Triple zig zags are allowed, … so room for another X then Z.
The internal C legs have to be five subwaves.
One issue I do see is that your first C wave fails to make a lower low on your proposed point of completion. Could be a fifth wave truncation relative to the 3rd wave (of C) low …. but those are usually associated with strong reversals the other way.
Looking at the weekly you can consider the first move from the major high to 240 as a large A wave. The choppy 61.8% retracement to the recent high was the B wave. The long term target for C is then probably C=A at around 183 which is close to a 61.8% retracement of the entire move from the 2008 low. Shorter term I would probably short this on a 61.8% retracement or retest of recent trend line break (say 324-327 area) and look for a third wave down at a 1.618 extension so a target of say 257. If that turns out to be roughly what happens then there should be a 3 wave correction into the 285 area before a long fifth wave down. If C=A in time then this could be over by end of April 2018.
Ie, similar call but where Ranchida’s AB and C are my W X and Y, into which your ABC’s can fit.
He simply has a lower target at 183 than yours, somehow.
I’m doubtful we see C=A at this stage. But I’ll chime in if my work becomes clearer.
With XBI where you have the double top, the 61.8% retracement of the entire move takes you to the start of the last monthly leg up at 44
Thanks guys, very informative. Bookmarking this post 🙂