Daily chart trend: Long. Main price points: 1115-1120. Looking for: Top of a Long wave 5 or C
The price structure on the daily chart is showing two valid scenarios. On the left side of the chart, it shows an impulse structure with five waves up from the 665 lows to the current highs. If this is the case then the wave 4 discussed on the weekly chart (not shown) will be rejected since the fourth wave is a corrective wave, which means it cannot be sub-divided by a five wave move. However, in this scenario, a three wave push lower into a corrective blue wave 2 with a target somewhere around the 950 area is expected.
On the right side of the chart, we have a different picture with a clear zig-zag correction, which is valid for a wave 4 scenario. In this case, a lower and a large Short blue wave 5 will follow.
Overall, the price structure is signaling for an upcoming turning point on both wave counts with at least a three wave push lower since the market is trading around the top of a black wave 5 or black wave C leg.
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Disclosure: No positions