Taking a look at the highlighted regions labeled 2 & 3 colored light blue, you will see resistance and possibly a reversal. If the price action corrects down to the first green buy region from the 2 light blue box then I would assume that this most recent run was the third Impulse wave and the previous wave 3 was actually just the first impulse wave. However, if the price action were to reverse in the 3 light blue box (883-937) down to the second green box then I would assume that the most recent impulse wave was the 5th. Either way a correction is in the works, whether it be a 4th wave or a complete ABC correction set.
Note
Time Frame: About a weekNote
The price action could correct between those two downward lines before ever hitting the third light blue box! Thus slowing exiting any long positions would be a good idea over the next few days.Note
There is a wedge looking to complete followed by clear bearish divergence in the RSI indicating a reversal into a correction wave. Such was brought to my attention thanks to K3v1nTan and moon910719.Note
Well looks like things are going according to plan somewhat. We should be seeing a reversal sometime soon and the RSI is saying the same thing as it is still showing divergence and now overbought.Note
I'm 99% sure that this was in fact the 3rd Impulse and not the 5th. That being said we should be on the look out for a decent sized correction wave 4 and a bounce into the actual 5th impulse wave.Note
Boy was I wrong :(
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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.