It’s not entirely clear to me how to count this initial move off its high, as I need a couple of additional waves in order to make a stronger case for any one in particular.
I will note a few things. I note that it is right at a level of prior support (green arrow), but buyers have yet to step in strongly as they had the last time we were at this level.
If this level fails, then I would suspect we have passed out of a nest of ones and twos, and that we are in the threes, fours and fives. So, if it fails here, I would expect a series of lower lows before a relief rally that may retest this level we’re at from beneath.