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This chart highlights the Elliott Wave corrective structure currently in play. The market is in Wave C correction, providing critical zones for potential opportunities. Let’s dive into the details:
🔍 Wave Analysis Breakdown
Wave A – Impulsive Phase
The initial bullish rally marked strong upward momentum.
This move laid the foundation for the current corrective phase.
Wave B – Corrective Pullback
A partial retracement of Wave A, showcasing indecision and consolidation.
Wave C – Ongoing Correction
Prices are now completing the corrective Wave C, which typically ends in critical support zones:
Primary Zone: 23,054 – 22,742
Extended Zone: 21,893 – 21,618
These zones act as potential reversal levels for a new bullish wave.
📉 Key Scenarios to Monitor
Bearish Scenario – Breakdown Risks
If the price closes below 21,100 on the weekly chart, it would signal a deeper bearish continuation.
In this case, expect a drop toward 19,400 – 19,200, which aligns with long-term support levels.
Bullish Scenario – Reversal Opportunities
If prices find support within Wave C completion zones, a reversal toward 23,500 – 24,000 could materialize.
A sustained move above 23,500 would confirm the beginning of a new bullish wave, targeting 25,000 – 26,000.
📌 Support and Resistance Levels
Support Zones:
Zone 1 (First Completion Zone): 23,054 – 22,742
Zone 2 (Extended Completion Zone): 21,893 – 21,618
Critical Level: 21,100 (break below signals bearish trend).
Resistance Levels:
First Target: 23,500 – 24,000
Higher Targets: 25,000 – 26,500 (if reversal holds).
💡 Strategy for Investors
Short-Term Trading Plan
Entry Points:
Look for price action confirmation within 23,054 – 22,742 or 21,893 – 21,618.
Watch for bullish candlestick patterns (hammer, engulfing) or RSI oversold conditions.
Stop-Loss:
Place a stop-loss below 21,100 to limit risks.
Target Zones:
First Target: 23,500 – 24,000.
Trail stop-loss for higher targets at 25,000 – 26,000.
Long-Term Investment Plan
Accumulation Strategy:
Use laddered buying within 21,893 – 21,618 and add positions closer to 21,200 if prices dip further.
Stop-Loss:
Place below 21,000 on all positions.
Exit Strategy:
Gradually exit at 24,000 and above, holding part of the position for 25,500 – 26,500 if the bullish trend resumes.
🔑 Key Observations
Wave C Correction in Progress: Prices are nearing completion zones, creating opportunities for both traders and investors.
Confirmation is Key: Wait for bullish signals before entering long positions. Avoid premature entries.
Break Below 21,100: This would invalidate the bullish outlook and signal further downside, with targets around 19,400 – 19,200.
⚠️ Risk Management Tips
Position Sizing: Invest gradually as prices approach the support zones.
Avoid Overleveraging: Use a small portion of your capital per trade to minimize risks.
Strict Stop-Losses: Stick to the 21,100 threshold to protect against large losses.
🚀 Final Takeaway
This Wave C correction offers significant opportunities near the support zones, but patience and confirmation are essential. A strong rebound could set the stage for the next bullish cycle, while a breakdown below 21,100 could lead to deeper corrections.
Stay disciplined and follow your trading plan! 📈
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.
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.