The market for the last few weeks has been really choppy. The wave count which I posted earlier was updated in this chart after further inspection.
The current market condition is not favorable for bulls at all. First of all, the 5 wave impulse which is also shown in the chart can be a part of bigger extended flat correction leading to bear market. Since the wave A of correction was 5 wave impulse as shown, it shows that the correction will be zig-zag, hence we have an invalidation level for our bearish case, which sits just beyond ending of wave 5 level.
Now coming to bearish case, the ABC zig-zag correction can also turn into an extended 5 wave downward impulse if you consider the recent 5 wave impulse to be the C wave of extended flat on weekly chart thus caution is advised if you are looking for buying at these levels.
The market will most likely go for SL hunting towards the most recent fractal before going down as stated.
The current market condition is not favorable for bulls at all. First of all, the 5 wave impulse which is also shown in the chart can be a part of bigger extended flat correction leading to bear market. Since the wave A of correction was 5 wave impulse as shown, it shows that the correction will be zig-zag, hence we have an invalidation level for our bearish case, which sits just beyond ending of wave 5 level.
Now coming to bearish case, the ABC zig-zag correction can also turn into an extended 5 wave downward impulse if you consider the recent 5 wave impulse to be the C wave of extended flat on weekly chart thus caution is advised if you are looking for buying at these levels.
The market will most likely go for SL hunting towards the most recent fractal before going down as stated.
Note
Another possible scenario could be a triangle as shown below.Note
Another bearish case which can occur.These 3 are currently the more probable scenarios for US30
Trade closed: target reached
The downward flush has been swift as expected. Theres still room for market to go lower but at this point, theres already significant profits made in the trend.
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.