To Answer Jim’s Question
We appear to be in wave 5 of an impulse, the question is degree. In the bull case this is the end of wave 1 of C and the target for the completion of C is 1600 (minimum). In the bear case a larger degree impulse series is completing red C. I would not expect this move to exceed 1380 before a reaction in either case. The type of reaction should determine which pattern is correct. A break of the blue C-E support line and 1270 pivot puts me bearish overall. A corrective decline is potentially a good long entry set up with a stop below 1270.
Should we blow through 1380 now and take out red A then I would say the bear case is shot and C is extending and will ultimately exceed 1600.
1380 was always the Gann objective as you can see in the third chart which I published in August last year. We are retesting the green trend line and double arc resistance now almost a year later. Note that the next arc resistance is about 1600 if we clear resistance
Thanks for joining the discussion Ranchida
You are bringing a new perspective.
Thanks Rachida. I’ll have to ponder this a while. I guess I’m trying to figure out why the early July low couldn’t have been considered the end of red C /IV. Polyanna vision.